Tamweel Mortgage Finance is planning to complete the first issuance of a new multi-tranche securitization bond program with a total value of EGP 5 billion.

Mohamed El-Kahky, the company’s Managing Director, told Al Borsa that the first tranche, worth approximately EGP 1.7 billion, will be completed at the beginning of the fourth quarter of this year.

He added that the company signed agreements yesterday with the issuance advisors—Commercial International Bank (CIB), Al Ahly Pharos, and CI Capital Holding for Financial Investments.

Al-Derini & Partners will provide legal advisory services for the issuance, MERIS will handle the credit rating, and Baker Tilly will serve as the auditor.

El-Kahky noted that this securitization is aimed at reducing the financial leverage of the company’s current portfolio, which stood at approximately EGP 4.18 billion at the end of June. The proceeds from the bond issuance will typically be used to repay bank loans.

He explained that mortgage-backed securities generally offer strong guarantees, especially since the value of the underlying property continues to rise—unlike other sectors.

El-Kahky added that the mortgage finance sector in Egypt faces challenges such as high inflation and recurring increases in real estate prices, which reduce clients’ ability to invest.

He continued, “Real estate developers themselves struggle with the constant rise in raw material prices. Their choices are limited—either delay unit delivery or deliver them at a loss due to the gap between old selling prices and increased construction costs.”

Tamweel Mortgage Finance is a subsidiary of Tamweel Holding for Investment, which also oversees several non-banking financial services companies, including leasing, factoring, insurance brokerage, and securitization.