Tamweel Mortgage Finance—a subsidiary of Tamweel Holding—is currently in negotiations with three banks to secure loans totaling around EGP 1.5 billion as part of its expansion strategy for mortgage lending.

Mohamed El-Kahky, Managing Director of the company, told Al-Borsa that Tamweel aims to grow its mortgage finance portfolio to EGP 3.2 billion by the end of this year, up from EGP 2.7 billion at the end of 2024.

He expects the mortgage finance sector to benefit if interest rates decline in the coming period, noting that higher rates have negatively impacted non-banking financial activities, particularly for individuals.

El-Kahky also revealed that the company has launched a multi-tranche securitization bond program worth EGP 5 billion, and recently completed the first tranche of EGP 1.8 billion.

This recent issuance was backed by a portfolio of future receivables valued at EGP 3.3 billion.

Five banks fully subscribed to the EGP 1.8 billion securitization bonds. The Commercial International Bank (CIB) alone subscribed to over a third of the issuance with EGP 623.2 million.

CIB, Al Ahly Pharos, and CI Capital acted as joint lead managers and bookrunners for the issuance. CIB, National Bank of Egypt, Banque du Caire, Arab African International Bank, and SAIB also participated as underwriters and subscribers.

Al-Derini & Partners acted as the legal advisor; BDO (Bekertili) served as the auditor; MERIS handled the credit rating; Tamweel Securitization Company was the issuing entity; CIB served as custodian; and Banque du Caire as the receiving bank for subscriptions.