- EGP 1 billion in bond issued by El Taamir for Securitization Company
- Subscription to support development of modern urban infrastructure in Egypt
- Project will develop local currency-denominated bond market in Egypt
The EBRD is supporting the development of modern urban infrastructure in Egypt through its participation in a local currency bond issue that will free up funds for investment by a municipal authority that aims to create sustainable cities where residents can enjoy a better life.
The EBRD will invest EGP 1 billion in a bond issued by the El Taamir for Securitization Company, on behalf Egypt’s New Urban Communities Authority (NUCA). The issuance will benefit from a guarantee by the Ministry of Finance and will be listed on the Egyptian stock exchange.
El Taamir is a special-purpose vehicle incorporated in Egypt and established by NUCA, an economic authority responsible for developing new urban communities in the country.
The Bank’s subscription will support the development of the local-currency bond market in Egypt and will be the first use of a new short-term capital-market debt instrument. It will also help NUCA to continue developing new sustainable towns on desert land, with the aim of relocating some of the population away from the narrow strip of the Nile Delta. This will help stimulate the economy and create new job opportunities.
During a ceremony to mark the debut listing of the bond on the Egyptian stock exchange, the EBRD’s First Vice President, Jurgen Rigterink, said: “We are delighted to participate in this landmark transaction arranged by the National Bank of Egypt and EFG Hermes. The EBRD’s participation will support the development of new urban centres, aiming to create job opportunities, a better quality of life and economic growth in the country. The EBRD is particularly pleased to see this transaction demonstrating the effective use of the new short and medium-term capital-market debt instrument developed by the Egyptian Financial Regulatory Authority with the support of the EBRD. This instrument will help deepen the local capital market and attract more international players to a key market segment that has been dormant for almost 10 years.”
NUCA has developed more than 20 cities, with the strong support of the private sector including developers and contractors.
Egypt is a founding member of the EBRD. Since the start of its operations in Egypt in 2012 the Bank has invested more than €5.3 billion in 102 projects in the country. In 2018 Egypt was the leading recipient of EBRD investment.