CIB Achieves Milestone with Second Largest Bond Issuance with EGP 15 bn
First Bank
The Commercial International Bank Egypt (CIB), the largest private sector bank in Egypt, successfully completed the second issuance of the third tranche of the Urban Development Company’s bonds, in collaboration with “Al Ahli Pharos” and “CI Capital,” supported by a financial rights portfolio owned by the New Urban Communities Authority. The total value reached EGP 15 bn as the second slice of a multi-billion pound issuance program.
This marks the second-largest commercial paper issuance in the history of the Egyptian market, following CIB’s success in closing the largest issuance of EGP20 bn in September 2022 for the New Urban Communities Authority.
The bonds were issued in four tranches with values of EGP1.3 bn for the first tranche, EGP3.9 bn for the second, EGP4.8 bn for the third, and EGP5 bn for the fourth, with maturities ranging from 1 year to 7 years, attracting significant interest from investors.
CIB played the roles of general coordinator, financial advisor, issuance manager, and subscription promoter in collaboration with “Al Ahli Pharos” and “CI Capital.” Additionally, CIB acted as coverage guarantor in cooperation with the National Bank of Egypt, Banque Misr, Banque du Caire, Suez Canal Bank, and Qatar National Bank. Many other banks participated in the subscription, and CIB also served as the subscription receiver.
The legal advisory role for the offering was handled by Dreny & Partners while Baker Tilly Hilal & Abdel Ghaffar acted as the issuance’s accountants.
The New Urban Communities Authority will benefit from the issuance to support the development of new urban areas and fourth-generation cities, including the New Administrative Capital and the New Alamein City, contributing significantly to job creation, improving quality of life, and supporting development plans in Egypt.
Amr El-Ganainy, Deputy CEO and Executive Board Member of CIB Egypt, emphasized the longstanding relationship between the bank and the New Urban Communities Authority, highlighting previous successful offerings totaling EGP81 bn.
He stated that this issuance is the second-largest securitization operation in the history of the Egyptian market.
El-Ganainy added that CIB is at the forefront of national institutions supporting the government’s current projects across various sectors, including infrastructure projects.
He confirmed that the recent securitization, the second issuance since the beginning of the year, reflects the bank’s ability to leverage all factors and address challenges to successfully complete transactions.
