Cairo for Investment and Real Estate Development (CIRA) is expected to complete its future flow securitisation programme of EGP 2bn before the end of this month, sources told Daily News Egypt on Tuesday.
The sources added that the final procedures for the issuance have been completed, and it is only pending the final approvals from the Financial Regulatory Authority (FRA).
According to CIRA, the company plans to issue EGP 2bn worth of securities backed by 6% of future tuition revenues over three tranches. The first issuance of the programme will see the company sell EGP 800m worth of bonds to financial institutions and other institutional investors, the second tranche is worth EGP 800m and will be issued in 2023, and the third tranche is worth EGP 400m and will be issued in 2024.
Mohamed Salama, the company’s investment manager, told Daily News Egypt last July that the proceeds of the operation will be directed to finance the construction works in three universities, namely Assiut University, which was scheduled to be inaugurated in September 2022, the University of Technology, which is scheduled to open in September 2023, and the Damietta University, which is scheduled to open in September 2024, as well as building 2-3 schools annually.
He pointed out that the company will slightly raise tuition fees in the next academic year to compensate for higher construction costs.
The FRA had licensed the Financial Group for Securitization to be the first company to securitise future flows on behalf of CIRA, provided that the first issuance of the multi-issuance programme should be a maximum of EGP 800m for 7 years.