The New Urban Communities Authority (NUCA) has issued securitization bonds worth EGP 15bn, which were fully subscribed by 11 local banks operating in the Egyptian market. The bonds are part of the third programme of the El Taamir for Securitization Company, which has a total value of EGP 30bn and is managed by Al-Ahly Pharos, CI Capital, and the Commercial International Bank (CIB).
The CIB was the largest subscriber, acquiring 33.3% of the bonds, worth EGP 4.9bn. The National Bank of Egypt (NBE) and Banque Misr followed with 13.3% and 5.9% of the bonds, respectively, worth EGP 1.9bn and EGP 885m. Other banks that participated in the subscription were Banque du Caire, Faisal Islamic Bank, Emirates NBD, Abu Dhabi Islamic Bank, First Abu Dhabi Bank, the Housing and Development Bank (HDB), the United Bank, and the Suez Canal Bank.
The bonds were issued in four tranches with different maturities and interest rates. The first tranche was worth EGP 1.3bn and had a maturity of one year. The second tranche was worth EGP 3.9bn and had a maturity of three years. The third tranche was worth EGP 4.8bn and had a maturity of five years. The fourth tranche was worth EGP 5bn and had a maturity of seven years.
The bonds are backed by a portfolio of financial rights owned by NUCA, which include land sales, installment payments, and utility fees. The bonds are rated AA+ by the Middle East Rating and Investors Service (MERIS).
This is the second largest securitization bond issue in the history of the Egyptian market, after the record-breaking EGP 20bn issue by NUCA in September 2022. The bonds witnessed high demand from investors, reflecting the confidence in the Egyptian economy and the real estate sector.
