EBRD invests EGP 927 Mn in El Taamir’s securitisation local currency bond issuance

The European Bank for Reconstruction and Development (EBRD) is supporting the development of Egypt’s urban infrastructure sector by investing EGP 927 million (€ 27 million) in a securitised local currency bond issued by El Taamir for Securitization Company (El Taamir), a special purpose vehicle set up by the New Urban Communities Authority (NUCA).

This investment is part of the EGP 20 billion Issuance of September 2022, which is the largest securitised issuance in Egypt to date and benefits from a guarantee by the country’s Ministry of Finance. It was listed on the Egyptian stock exchange in November 2022.

NUCA has developed more than 40 cities with solid support from the private sector, including developers and contractors. NUCA will use the proceeds of the bond issuance for capital and operating expenditures.

The Bank’s investment will support a range of municipal infrastructure projects covering drinking water, sanitation, treated water storage and pumping stations, street lighting and power transmission.

Egypt has been undertaking a number of initiatives to achieve inclusive and sustainable growth in cities. The Bank will provide a comprehensive technical cooperation package to help NUCA build a sustainable path for water management in one of its new cities. This will include a gender-responsive water assessment to ensure that sustainable and inclusive governance of water resources benefits women and men equally.

The EBRD’s investment will also contribute to the development of green capital market products in the country, with dedicated technical support in preparation for NUCA’s potential green bond issuance.

The €810,000 technical support package is funded by the Netherlands through the High-Impact Partnership on Climate Action (HIPCA, also supported by Austria, Canada, Finland, Korea, Switzerland, Spain, TaiwanICDF and the United Kingdom) and the EBRD’s own funds.

Since 2012 the EBRD has invested over €10.4 billion in more than 160 projects in Egypt, with almost 55 per cent of its portfolio invested in sustainable infrastructure.