The Financial Regulatory Authority (FRA) considers the request submitted by the New Urban Communities Authorities (NUCA) to issue the largest securitisation bond programme in the Egyptian capital market, with a value of EGP 20bn, bringing the total number of securitization bonds issued since the beginning of this year to about EGP 30bn.
Mohamed Omran, Chairperson of the FRA, said that since 2018, with the launch of the first phase of its comprehensive strategy for non-banking financial activities (2018-2022), the authority has sought to activate and develop debt instruments represented in corporate bonds and securitization bonds for futures in addition to sukuk, given its vital role in deepening the Egyptian capital market and creating an added value for the national economy.
He said that as approvals are completed, the total issuance of bonds and sukuk will reach EGP 34bn, which calls for continuing to improve the procedures for offering and listing sukuk and debt instruments within the trading system for its prominent role in financing companies, bodies and public legal persons.
In July 2022, the Financial Group for Securitization became the first in Egypt to securitise future flows, following the FRA’s approval of the multi-issuance programme.
