NUCA just closed Egypt’s largest securitization so far this year: The New Urban Communities Authority (NUCA) has closed a EGP 15 bn securitized bond issuance, the first in an EGP 30 bn program, according to a statement (pdf) from Dreny & Partners, which acted as the authority’s legal advisor.

About the issuance: The four-tranche issuance, backed by a receivables portfolio originated by NUCA, is comprised of an EGP 1.71 bn tranche, an EGP 6.06 bn tranche, an EGP 5.82 bn tranche, and an EGP 1.41 bn tranche. The tranches received a rating of Prime 1, AA, AA-, and A-, respectively, from the Middle East Ratings and Investors Service (MERIS). The statement didn’t disclose how the authority will use the proceeds.

The biggest of 2023 by a wide margin: The crown for the largest issuance of the year was previously held by MNT-Halan, which closed a USD 140 mn (EGP 3 bn) sale in February.

NUCA is the biggest player in the local securitization market: NUCA has twice set the record for the market’s biggest securitization, closing a EGP 20 bn transaction in 2022 and a EGP 10 bn sale in 2020. Since 2019, it has securitized EGP 55 bn of its portfolio.

DATA POINT- Companies have now issued someEGP 37.5 bn of securitized bonds so far this year, more than double the EGP 16.56 bn issued during the same period last year.

Advisors: CI Capital, Al Ahly Pharos and CIB acted as financial advisors, while Banque Misr, National Bank of Egypt, Banque du Caire, and CIB were underwriters. CIB was also custodian and bookrunner, and Baker Tilly was the sole auditor. Dreny & Partners provided counsel.

^^ What does all this mean? We broke down the different roles in securitization in a recentexplainer.

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