NUCA, which is responsible for developing satellite cities, mainly around Cairo, said it had approached banks to manage the sale, which should begin toward the end of February.

"It will range between 3 and 5 billion pounds. We're hoping for 5 billion, but it depends on the market," NUCA Vice Chairman Safwat Ghanem said by telephone.

He said the bonds would be priced immediately before they were sold, at a margin over the after-tax yield on 6-month treasury bills.

NUCA will use the proceeds to finance city development and construction of electricity, waste water and other infrastructure, Ghanem said.

NUCA sold 10 billion pounds in bonds last year in four separate tranches after the government changed the law to allow utilities and other quasi-government organisations to issue bonds.