Commercial International Bank (CIB) and National bank of Egypt (NBE) announced the successful closure of the biggest securitization bond issuance in the history of the Egyptian Debt Capital Market, worth EGP 20 billion for the New Urban Communities Authority. This issuance aims to finance a number of its underway megaprojects cross-country including the new administrative capital and New Alamein.

The issuance has a high quality portfolio with zero default rate and a robust cash pay back ability which was reciprocated by a healthy appetite to invest from reputable financial institutions, where the issuance was oversubscribed more than 2.5 times. The issuance comprises five tranches: with amounts of EGP 1 billion, EGP 2.9 billion, EGP 3.8 billion, EGP 6.6 billion and EGP 5.7 billion, for Tranches (A,B,C,D & E respectively) with tenors of 12 months, 36 months, 60 months, 84 months and 104 months.

CIB and NBE acted as the financial advisor, general arranger, issuance manager, promoter, and co-underwriter. CIB served as the transaction’s custodian and subscription-receiving bank.

Participating regional and local financial institutions included Abu Dhabi Commercial Bank, Qatar National Bank, the Housing and Development Bank, Al Ahli Bank of Kuwait, Arab Investment Bank, Societe Arabe Internationale De Banque, Attijariwafa Bank, Faisal Bank, and Mid Bank.

Dereny Law Office was the legal advisor, and KPMG was the official transaction auditor.