“Securitization” and “Bond Issuance”: Alternatives for Companies to Diversify Funding Sources

Mohamed El-Kahky, Managing Director of Tamweel for Real Estate Finance, stated that financing projects under construction is one of the key factors that can stimulate the real estate industry in Egypt.

During his speech at the Fourth Forum on Non-Bank Financing Instruments held on Tuesday, in a session titled “Real Estate Finance and Factoring as a Key Player in Supporting Investment,” El-Kahky called on decision-makers to take measures that enable financing opportunities for real estate projects under construction, noting that this model is widely adopted in the United States and Canada.

El-Kahky emphasized that most banks and companies do not finance this stage of real estate development, despite it being one of the essential phases that require funding.

The Managing Director of Tamweel explained that recent amendments facilitating the registration process and lowering interest rates support the real estate sector’s activity in the coming period, highlighting that real estate finance depends on long-term periods, which bring stability to the market.

El-Kahky added that securitization mechanisms and bond issuance are alternatives for companies operating in the real estate finance sector to diversify funding sources. He confirmed that the two main stages currently being targeted by companies to finance customers are the resale phase by the real estate developer and the unit handover phase.