Cairo — EFG Hermes announced the completion of a $32.2 million (EGP 1.6 billion) securitized bond for Bedaya Mortgage Finance, marking the company’s seventh securitization since inception and its fifth under the Capital for Securitization program.
The bond, backed by Bedaya’s receivables portfolio, was divided into four tranches with different maturities and credit ratings issued 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 issuance demonstrates strong investor confidence in Bedaya’s portfolio and highlights the firm’s commitment to providing innovative financial solutions that enhance liquidity and support sustainable growth.
EFG Hermes acted as the sole financial advisor, manager, underwriter, and arranger of the deal. The National Bank of Egypt, Al Baraka Bank, and CIB underwrote the bond, while Bank NXT and ABC participated as investors. The National Bank of Egypt also served as placement agent. Dreny & Partners provided legal counsel, and Baker Tilly acted as auditor.
The transaction reflects the continued development of Egypt’s mortgage finance sector, where demand for affordable housing remains strong. In March, Mai Abdel Hamid, CEO of the Social Housing and Mortgage Finance Fund (SHMFF), reported that total mortgage financing in Egypt reached about $1.7 billion (EGP 81.2 billion), supporting more than 617,500 individuals through 22 banks and eight mortgage finance companies.
Government initiatives are also expanding housing accessibility. The state allocated $208.6 million (EGP 10.1 billion) in cash subsidies, with the average mortgage standing at $2,716 (EGP 131,500). Since 2014, approximately 2.1 million Egyptians have applied for housing programs, with nearly one million units completed or under construction.
Recent phases include 54,600 eco-friendly housing units across nine cities and 27,944 middle-income and investment units in 15 governorates, reinforcing Egypt’s strategic push for sustainable and affordable urban growth.
The Bedaya transaction underscores the dual role of private financial institutions and the state in driving Egypt’s mortgage ecosystem, ensuring wider access to credit and supporting the government’s long-term housing objectives.
