Tamweel Mortgage Finance Successfully Completes Securitization Bond Issuance Worth EGP 1.8 Billion
Tamweel Mortgage Finance has successfully completed, for the third consecutive year, the largest securitization bond issuance in Egypt’s mortgage finance sector, with a value of EGP 1.8 billion in November 2024. The bonds are backed by future financial rights amounting to EGP 3.3 billion.
The issuance was managed and marketed by the Commercial International Bank (CIB), Al Ahly Pharos, and CI Capital.
Underwriters for the issuance included CIB, the National Bank of Egypt, Banque du Caire, Arab African International Bank, and SAIB—all of which also participated in the subscription.
Legal advisory was provided by Al-Derini & Partners, auditing by BDO (Bekertili), credit rating by MERIS, and securitization management by Tamweel Securitization Company. CIB acted as custodian, while Banque du Caire was the receiving bank.
This issuance marks the first tranche of Tamweel Holding’s second securitization program, valued at EGP 5 billion, approved by the Financial Regulatory Authority in July 2024. The first program consisted of three issuances by the group’s companies totaling nearly EGP 3.8 billion out of an approved EGP 4 billion.
The EGP 1.8 billion issuance is divided into five tranches:
Tranche 1: EGP 625.7 million, rated AA+, with a 24-month maturity, representing 35% of the issuance.
Tranche 2: EGP 345.5 million, rated AA, with a 36-month maturity, representing 19%.
Tranche 3: EGP 373.3 million, rated AA-, with a 48-month maturity, representing 21%.
Tranche 4: EGP 245.3 million, rated A, with a 60-month maturity, representing 14%.
Tranche 5: EGP 200.6 million, rated A-, with a 75-month maturity, representing 11%.
Mr. Mohamed El-Kahky, Managing Director of Tamweel Holding, expressed his pride in this milestone, noting it as the largest mortgage-backed securitization in Egypt for the third year running. The total value of bonds issued by Tamweel Mortgage Finance has now reached EGP 5.1 billion—making it the highest among mortgage finance companies in Egypt.
He highlighted the company’s consistent growth in issuance values: EGP 1.6 billion in the first, EGP 1.7 billion in the second, and EGP 1.8 billion in the current year.
El-Kahky also noted that the issuance maintained strong credit enhancement ratios, providing solid guarantees for bondholders. The subscription coverage reached double the issuance amount, reflecting high investor confidence in Tamweel Mortgage Finance and the quality of its portfolio.
He pointed out that mortgage-backed bonds are typically well-secured, especially as the value of the underlying property continues to rise. The average loan-to-value ratio in this issuance was 36%.
He concluded by thanking all participating parties and expressed his hope for continued successful collaboration in the future.
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