The European Bank for Reconstruction and Development backs Egypt’s New Urban Communities Authority

14-11-2019
The European Bank for Reconstruction and Development backs Egypt’s New Urban Communities Authority
The European Bank for Reconstruction and Development backs Egypt’s New Urban…
Copyright: EBRD

The European Bank for Reconstruction and Development (EBRD) is supporting the development of modern urban infrastructure in Egypt through its participation in a local currency bond issue that will free up funds for investment by a municipal authority that aims to create sustainable cities where residents can enjoy a better life.

The EBRD will invest EGP 1 billion in a bond issued by the El Taamir for Securitization Company, on behalf Egypt’s New Urban Communities Authority (NUCA). The issuance will benefit from a guarantee by the Ministry of Finance and will be listed on the Egyptian stock exchange.

The Bank’s subscription will support the development of the local-currency bond market in Egypt and will be the first use of a new short-term capital-market debt instrument. It will also help NUCA continue developing new sustainable towns on desert land, with the aim of relocating some of the population away from the narrow strip of the Nile Delta. This will help stimulate the economy and create new job opportunities.

Egypt is a founding member of the EBRD. Since the start of its operations in Egypt in 2012 the Bank has invested more than €5.3 billion in 102 projects in the country. In 2018 Egypt was the leading recipient of EBRD investment.

 

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Press Release

European Bank for Reconstruction and Development (EBRD)