The Egyptian government's New Urban Communities Authority (NUCA) said on Tuesday it will sell up to LE 5 billion in five-year bonds next month to finance infrastructure and other development. NUCA, which is responsible for developing satellite cities, mainly around Cairo, said it had approached banks to manage the sale, which should begin toward the end of February. "It will range between LE 3 [billion] and LE 5 billion. We're hoping for 5 billion, but it depends on the market," NUCA Vice Chairman Safwat Ghanem said by telephone. He said the bonds would be priced immediately before they were sold, at a margin over the after-tax yield on six-month treasury bills. NUCA will use the proceeds to finance city development and construction of electricity, waste water and other infrastructure, Ghanem said. NUCA sold LE 10 billion in bonds last year in four separate tranches after the government changed the law to allow utilities and other quasi-government organizations to issue bonds directly.
