A bond issued by Egypt's New Urban Communities Authority (NUCA), in which the European Bank for Reconstruction and Development (EBRD) invested EGP 500 million (€29 million), has won The Banker's “Deal of the Year 2020 - Africa” award in the securitisation category. The Banker, a sister publication of the Financial Times, lists the awards to celebrate the most impressive investment banking transactions across the broad spectrum of global capital markets. The awarded issuance of EGP 4 billion was arranged by Sarwa Capital Holding for Financial Investments and Banque Misr, with the EBRD being a major participant and the only international investor to participate in the offering. It was the second transaction under an EGP 10 billion local currency programme by NUCA with the aim of diversifying its sources of financing and accessing a cost-effective and flexible alternative to traditional bank financing. The funds raised are particularly impactful, according to the EBRD's website, as NUCA has embarked on an ambitious investment plan to develop a number of new cities to accommodate Egypt's growing population away from the narrow strip of the Nile Delta. “This will help stimulate the Egyptian economy and create new job opportunities for local people,” said the EBRD. In total, the EBRD invested EGP 1.5 billion in the programme. The EBRD's head of infrastructure for Turkey, Middle East and Africa, Sue Barrett, said that the landmark bond programme will further support the deepening of the local debt capital markets in Egypt, and contribute to the much-needed diversification of investable EGP assets for the local and international institutional investor base. NUCA has developed more than 20 new cities in Egypt, working closely with the private sector, including developers and contractors.
