El Taamir for Securitization Company

Location:

Egypt

Project number:

51256

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

24 Jul 2019

Status:

Signed

PSD disclosed:

06 Nov 2019

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

A participation of up EGP 1.5 billion (EUR 83 million equivalent) in two securitised local currency bond issuances (the "Issuances"), in the total amount of EGP 10 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

ETI score: 60

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 SAE

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 1,498,158,080.00

(EUR 83 million equivalent)

Total Project Cost

EGP 10,000,000,000.00

(EUR 530 million equivalent)

Additionality

The Bank's participation supports diversifying the range of financial products, including short term debt instruments, and developing the corporate bond market as an alternative to bank-led finance. It also supports sub-sovereign lending in new markets to build capacity and diversify funding sources, and acts as a catalyst for capital market transactions to increase market confidence and encourage private investments.

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 and Grant Financing

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

PSD last updated

12 Dec 2019

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Tel: +44 20 7338 6794
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General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Project Complaint Mechanism (PCM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g., through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s accountability mechanism.

The accountability mechanism independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit our webpage to find out how to submit a complaint through the confidential online form, by email, mail or telephone. We are available to discuss your concerns and answer any questions you may have about the submission or handling of complaints. Complainants’ identities may be kept confidential upon request.

Please note that after the appointment of the new mechanism Head in 2020, the revised Project Accountability Policy and Guidance will come into effect to guide case handling.

 

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