El Taamir For Securitization Company

Location:

Egypt

Project number:

51256

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

24 Jul 2019

Status:

Signed

PSD disclosed:

06 Nov 2019

Project Description

A participation of up EGP 1.0 billion (EUR 55 million equivalent) in a securitised local currency multi-tranche bond issuance (the "Issuance"), in the total amount of EGP 6 billion, in favour of the El Taamir for Securitization Company ("El Taamir", and the "Issuer").

The Issuer, an SPV established by the New Urban Communities Authority (the "Sponsor", "NUCA"), purchased receivables from the Sponsor, and the proceeds of the Issuance will be used to refinance existing short-term loans of NUCA advanced by commercial lenders under a bridge facility.

Project Objectives

The transaction enables the use of the Short Term Debt Instrument (STDI) developed through a TC project between the Egyptian Financial Regulatory Authority and EBRD in the domestic debt capital market for the first time and supports the Egyptian debt capital market in terms of liquidity and transaction volume.

The transaction will allow NUCA to restructure its balance sheet and strengthen its financial capacity.

The Bank's participation will help to build the necessary institutional capacity and procedures to develop a sustainable and efficient infrastructure Asset Management and Investment Plan for NUCA.

Transition Impact

Transition impact of the project is expected to derive from the:

(i)               Resilient transition quality by supporting the development of the local currency-denominated bond market in Egypt and the first-time use of a new short-term capital market debt instrument; and

(ii)              Well-governed quality through the development of an Asset Management and Investment Plan for the assets held by NUCA.

Client Information

EL TAAMIR FOR SECURITIZATION COMPANY

El Taamir (the "Issuer") is a special purpose vehicle (SPV) established in 2009 by NUCA to securitise NUCA's portfolio of land sale contracts to provide NUCA with the necessary liquidity to finance development of its new cities infrastructure.

NUCA is an economic authority responsible for developing the Egyptian new urban communities. NUCA is legally independent but is fully owned and controlled by the Government of Egypt through the Ministry of Housing, Utilities and Urban Communities ("MoHUU").

EBRD Finance Summary

EGP 1.0 billion (EUR 55 million equivalent)

Total Project Cost

EGP 6.0 billion (EUR 318 million equivalent)

Environmental and Social Summary

Categorised B (2014 ESP). Environmental and Social (E&S) due diligence was undertaken by ESD and was confined to a review of the Information Memo as well as publicly available information relating to the Company and the bond issue. Specifically regarding the three projects refinanced by the bond issue, the due diligence revealed no risks associated with land acquisition or other significant environmental or social issues. A corporate Environmental and Social Action Plan has been agreed as part of the Framework Agreement to commit the Company to developing policies and procedures for managing key E&S risks relating to their future operations in line with the Bank's Performance Requirements. There is no GET associated with this project.

Technical Cooperation

The project is expected to benefit from the following Technical Co-operation assignment:

Assistance of the preparation of an Asset Management and Investment Plan for NUCA, with an estimated cost of EUR 900,000.

Company Contact Information

Mr. Mohamed Mohamed Mahmoud Abou Raya
M.Aburiah@Taamir-Sec.com
+20233364631
26 El Kroum st., Floor 18, Mohandeseen, Giza

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