EBRD rises its contribution in Egypt’s LE20B bond program to LE 3B

CAIRO – 21 July 2020: The European Bank for Reconstruction and Development (EBRD) announced Tuesday supporting Egypt’s New Urban Communities Authority (NUCA) in its plans to diversify funding sources by tapping the debt capital market with an investment of LE 1.5 billion (€86.5 million) in the latest LE 10 billion bond issuance by El Taamir, the securitisation special purpose company of NUCA.

According to EBRD, this support will bring the Bank’s total contribution to LE 3 billion (€173 million) in NUCA’s LE 20 billion bond programme.

“This alternative way of financing urban infrastructure development will help NUCA to free up much-needed resources and continue developing new sustainable towns on desert land with the aim of relocating some of Egypt’s population away from the narrow strip of the Nile Delta. This will help stimulate the economy and create new job opportunities,” the bank said.

It noted that NUCA has developed more than 20 cities in Egypt, attracting strong support of the private sector including developers and contractors.

“The EBRD’s subscription will also support the development of the local currency bond market in Egypt. The securities will be listed on the Egyptian stock market. As the largest issuance in the history of the local capital bond market with a maturity among the longest available, the issuance contributes to the deepening of the local capital market,” it added.

On June 22, EBRD announced Monday supporting the Egyptian Economy with a $ 200 million financing package to National Bank of Egypt (NBE) for trade and for on-lending to local companies impacted by the coronavirus pandemic.

<blockquote class="embedly-card"><h4><a href="https://www.egypttoday.com/Article/3/88868/EBRD-finances-NBE-with-200M-to-confront-coronavirus-ramifications">EBRD finances NBE with $200M to confront coronavirus ramifications</a></h4><p>CAIRO - 22 June 2020: The European Bank for Reconstruction and Development (EBRD) announced Monday supporting the Egyptian Economy with a $ 200 million financing package to National Bank of Egypt (NBE) for trade and for on-lending to local companies impacted by the coronavirus pandemic.</p></blockquote>

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Minister of International Cooperation Rania al-Mashat stated earlier that cooperation volume between Egypt and the EBRD amounts to €6.5 billion through 115 projects.

<blockquote class="embedly-card"><h4><a href="https://www.egypttoday.com/Article/3/88807/EBRD-invests-65B-in-Egypt-through-115-projects">EBRD invests €6.5B in Egypt through 115 projects</a></h4><p>CAIRO - 21 June 2020: Cooperation volume between Egypt and the European Bank for Reconstruction and Development amounts to €6.5 billion through 115 projects, according to Minister of International Cooperation Rania al-Mashat.</p></blockquote>

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Egypt has been a shareholder of the EBRD since it was founded in 1991. The EBRD started investing in the country in 2012.