The European Bank for Reconstruction and Development (EBRD) will back the New Urban Communities Authority’s (NUCA) latest EGP 10 bn securitized bond issuance with EGP 1.5 bn investment, Invest-Gate reports.

The move brings the lender’s total investments in NUCA’s bond program to EGP 3 bn, having invested EGP 1.5 bn in two other offerings in 2019, EBRD announced in a press release on July 21.

“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 to relocate some of Egypt’s population away from the narrow strip of the Nile Delta,” read the statement, adding, “This will help stimulate the economy and create new job opportunities.”

Separately, on July 22, NUCA reportedly closed its three-tranche, EGP 10 bn securitized bond issuance, marking the largest of its kind in Egypt. Proceeds are earmarked to finance the development of new urban areas, namely the New Administrative Capital and New Alamein.

EBRD, Qatar National Bank, Attijariwafa, and Suez Canal Bank are all partaking in the three-tranche issuance, which consists of an EGP 2.6 bn, three-year offering, an EGP 6.2 bn, five-year offering, and an EGP 1.2 bn, seven-year offering.

The National Bank of Egypt (NBE), CIB, the Arab African International Bank, and the Housing and Development Bank will manage the issuance, with the former state-run bank acting as the lead arranger, whereas Dreny and Partners to offer legal counsel.