NUCA just completed its EGP 30 bn securitization program: The New Urban Communities Authority (NUCA) has closed a EGP 15 bn securitized bond issuance, the second and final issuance in a EGP 30 bn program, according to a statement (pdf) from Al Ahly Pharos, which acted as one of the financial advisors on the transaction.

About the issuance: The four-tranche issuance was backed by a receivables portfolio originated by NUCA, was composed of four tranches worth EGP 1.3 bn, EGP 3.9 bn, EGP 4.8 bn tranche, and EGP 5.0 bn. The tranches received a rating of Prime 1, AA, AA-, and A-, respectively, from the Middle East Ratings and Investors Service (MERIS).

The buyers: The issuance was subscribed to by Banque Misr, the National Bank of Egypt, Banque du Caire, CIB, Suez Canal Bank, and QNB.

Remember: NUCA in July closed the first EGP 15 bn issuance of the program, which at the time had already been the largest in Egypt so far this year and the first of the EGP 30 bn program. The issuances are the largest in Egypt in 2023, with the crown having previously been held by MNT-Halan, which closed a USD 140 mn (EGP 3 bn) transaction in February.

NUCA keeps its spot as biggest player in the securitization market: NUCA has been setting records in the securitization market in recent years, issuing a total of EGP 70 bn of securities since 2019. It set new records in 2020 with a EGP 10 bn issuance, and 2022 after closing a EGP 20 bn transaction.

Advisors: Al Ahly Pharos, CIB, and CI Capital acted as the financial advisors, transaction managers, book-runners, and arrangers. Banque Misr acted as the custodian, CIB acted as the placement agent, and Baker Tilly was the auditor of the transaction. Dreny & Partners was counsel.

**Feeling a bit lost? We recently broke down the different roles in the securitization process in an explainer.

DATA POINT- Companies have now issued around EGP 77.5 bn worth of securitized bonds so far this year, 71% more than what was taken to market in 2022.

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