Min.: EBRD's Contribution in NUCA's Bond Adds Confidence in Egypt's Economy

Dr. Rania Al-Mashat, Egypt's Minister of International Cooperation, said that the approval of the European Bank for Reconstruction and Development (EBRD) to take part in the latest bond issuance put forward by the New Urban Communities Authority (NUCA), reflects the international confidence in the Egyptian economy.

In a statement, the minister added on Wednesday that the confidence of Egypt's development partners and international financing institutions comes thanks to the economic reform programs implemented by Egypt during the past years.

She pointed out that the EBRD's contribution comes within the framework of the Ministry of International Cooperation’s efforts to provide the necessary funds for carrying out development projects and persifying funding sources.

The minister also highlighted the joint coordination platform, which was launched by the ministry in April 2020, among the multilateral and bilateral development partners with the aim of strengthening frameworks dialogue and cooperation between the government and development partners to shed light on the development efforts in the various sectors and define financing priorities.

Al-Mashat also hailed the decades-long economic partnership with the EBRD, which has been positively reflected on Egypt's development priorities.

Notably, the EBRD has invested EGP 1.5bn (€86.5m) in Egypt’s NUCA latest EGP 10bn bond issuance.

The bonds are part of a plan put in place by El Taamir, NUCA’s securitisation special purpose company, to persify funding sources by tapping the debt capital market. The EBRD’s investment brings its total contribution in NUCA’s EGP 20bn bond programme to EGP 3bn (€173m).

Egypt and the EBRD

Last month, the European Bank for Reconstruction and Development said that it is supporting the Egyptian Economy with a $ 200 million financing package to National Bank of Egypt (NBE) for trade and for lending to local companies impacted by the coronavirus pandemic.

Egypt has been a shareholder of the EBRD since it was founded in 1991. The EBRD started investing in the country in 2012, and since then has provided financing worth more than €6.5bn in 115 projects in the country.