Cairo — Investment bank EFG Hermes has completed advisory work on a $32.2 million (EGP 1.6 billion) securitized bond for Bedaya Mortgage Finance, marking the company’s seventh securitization since inception. The deal, finalized under the Capital for Securitization program, highlights continued momentum in Egypt’s mortgage finance sector.
The issuance is backed by Bedaya’s receivables portfolio and divided into four tranches, each assigned credit ratings by MERIS (Middle East Rating and Investors Service):
- Tranche 1: $3.5 million (EGP 171.3 million), 13 months, rated AA
- Tranche 2: $11.4 million (EGP 552.8 million), 36 months, rated A
- Tranche 3: $13.3 million (EGP 646.2 million), 60 months, rated A-
- Tranche 4: $3.85 million (EGP 186.9 million), 82 months, rated A-
Maie Hamdy, Managing Director of Debt Capital Markets at EFG Hermes, said the transaction underscores investor confidence in Bedaya while reinforcing the firm’s ability to deliver tailored capital solutions that support liquidity and long-term growth.
EFG Hermes acted as sole financial advisor, manager, underwriter, and arranger. The bond was underwritten by the National Bank of Egypt, Al Baraka Bank, and CIB, with Bank NXT and ABC joining as investors. The National Bank of Egypt also served as placement agent, while Dreny & Partners provided legal counsel and Baker Tilly acted as auditor.
Mortgage Market Growth in Egypt
Egypt’s mortgage sector has been expanding steadily. In March, Mai Abdel Hamid, CEO of the Social Housing and Mortgage Finance Fund (SHMFF), reported total mortgage financing had reached $1.7 billion (EGP 81.2 billion), benefiting over 617,500 citizens through 22 banks and eight mortgage companies.
The government has also injected $208.6 million (EGP 10.1 billion) in direct cash subsidies, with the average mortgage standing at $2,716 (EGP 131,500). Since 2014, about 2.1 million Egyptians have applied for housing programs, with nearly one million units for low-income households either completed or in development.
Of these, 721,000 units have already been delivered, while another 251,000 remain under construction. The latest phases include 54,600 eco-friendly homes across nine cities and more than 27,900 middle-income and investment units in 15 locations nationwide.
The Bedaya transaction reinforces Egypt’s broader push to expand affordable housing and improve access to mortgage financing, especially for low- and middle-income families.
