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.
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.
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.
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
(EUR 83 million equivalent)
Total Project Cost
(EUR 530 million equivalent)
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
26 El Kroum st., Floor 18, Mohandeseen, Giza
PSD last updated
12 Dec 2019
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Project Complaint Mechanism (PCM)
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