Tamweel Mortgage Finance, a subsidiary of Tamweel Holding Group, announced that its net mortgage financing portfolio has reached approximately EGP 3 billion following its securitization bond issuance.
The company completed its first securitization bond issuance in September 2022, valued at EGP 1.6 billion and backed by a portfolio of deferred financial rights worth around EGP 2.3 billion, making it the largest securitization issuance in Egypt’s mortgage finance sector.
Mohamed El-Kahky, Managing Director of Tamweel Mortgage Finance, expressed pride in the issuance, highlighting that it is the largest securitization of a mortgage portfolio in Egypt. He pointed out a key advantage: the average loan-to-value ratio of around 41%, which enhances the creditworthiness of the bonds.
He added that bonds backed by mortgage portfolios generally carry strong guarantees, particularly as the value of real estate used as collateral continues to rise — unlike in other sectors.
Tamweel Mortgage Finance ranked first among companies operating in the sector, holding a 26.72% market share, with a total of EGP 1.94 billion in financing during the first half of the current year, according to data from the Financial Regulatory Authority (FRA).
CIB and CI Capital acted as financial advisors, underwriters, and bookrunners for the issuance. The offering was subscribed by CIB, the National Bank of Egypt, and MID Bank.
Al-Derini & Partners served as legal counsel for the issuance, Ernst & Young as the auditor, and MERIS (Middle East Rating & Investors Service) as the credit rating agency.
The EGP 1.6 billion issuance was divided into five tranches:
- Tranche 1: EGP 206 million, rated AA+, with a 13-month maturity.
- Tranche 2: EGP 614.6 million, rated AA, with a 37-month maturity.
- Tranche 3: EGP 419.8 million, rated AA-, with a 61-month maturity.
- Tranche 4: EGP 290.8 million, rated A, with an 84-month maturity.
- Tranche 5: EGP 67.2 million, rated A-, with a 119-month maturity.
Mohamed Abou Ria, Managing Director of Tamweel Securitization, said the issuance is part of a multi-tranche program approved by the FRA in July 2021. He noted that Tamweel Securitization collaborates with group companies to complete the program and aims to attract securitization transactions from external clients across various sectors.
Tamweel Securitization acted as the assignee and issuer of the bonds. This issuance is the second under the group’s EGP 4 billion first program. The company previously issued EGP 460 million in December 2021 for Tamweel Finance (leasing), and EGP 690 million for Abdul Latif Jameel Consumer Finance, bringing the total securitization issuance to EGP 2.75 billion..
original linkhttps://www.alborsaanews.com/2022/10/17/1587621
