The Cairo Investment and Real Estate Development Company (CIRA) aims to collect about EGP 800m from the first tranche of the issuance of future rights bonds worth about EGP 2bn that will be injected into the company’s projects this year.
Investment Manager at CIRA Mohamed Salama said that the issuance will make up about 6% of the company’s total revenues on three tranches. The first tranche this year will be valued at EGP 800m, the second tranche next year will also be worth EGP 800m, and the third tranche in 2024 will be valued at EGP 400m according to the company needs.
Salama told Daily News Egypt (DNE) that the proceeds of the operation will be utilised in the construction works of three universities — namely Assiut University, which is scheduled to open in September 2022; the University of Technology, which is scheduled to open in September 2023; in addition to Damietta University, which is scheduled to open in September 2024 — as well as two to three schools to be opened annually.
The Financial Regulatory Authority of the Financial Group Securitisation Company agreed to issue the first multi-issue programme for future financial rights securitisation bonds worth EGP 2bn for a period of three years in favour of CIRA as the referral company for the future financial rights portfolio. The first issue of the programme should be a maximum of EGP 800m for seven years.
Salama pointed out that the company will inaugurate the first stage of each university and complete the rest of the stages over a period of five years, pointing out that due to the high costs, it will slightly raise university tuition fees during the next academic year.
He also noted that the inflationary pressures prompted the company to provide instalment programmes to finance students’ tuition fees and relieve parents, as it had already ended the contract with ValU to pay school fees, and two additional companies are under contract.
Furthermore, Salama revealed that CIRA plans to start the construction works at the Future Tech School this August, with the school set to open in September 2023, and its ownership structure is divided between CIRA (65%) and the Sovereign Fund of Egypt (35%) through a joint investment in the global company for educational investments that owns the school.
CIRA had earlier signed a partnership agreement with the Sovereign Fund of Egypt to establish two new schools — a branch of Futures Tech and another branch of the Regent British School — in the Cosmic Village in Sixth of October City at an investment cost of EGP 350m.