Cairo — EFG Hermes has finalized a $32.2 million securitized bond (EGP 1.6 billion) for Bedaya Mortgage Finance, marking the company’s seventh such issuance and its fifth under the Capital for Securitization program. The deal highlights the firm’s ongoing strategy to expand liquidity options in Egypt’s financial sector.
The transaction is backed by Bedaya’s receivables portfolio and structured into four tranches, each carrying distinct repayment timelines and credit ratings assigned 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, emphasized that the successful placement underscores investor confidence in Bedaya and reinforces EFG Hermes’ position as a leading provider of innovative financial solutions. “The transaction demonstrates our role in enhancing liquidity while supporting the growth trajectory of Egypt’s mortgage finance sector,” she noted.
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 participating as investors. The National Bank of Egypt also served as placement agent. Dreny & Partners provided legal counsel, and Baker Tilly acted as auditor.
Strengthening Egypt’s Mortgage Market
The issuance comes at a time when Egypt’s mortgage sector is gaining momentum. According to Mai Abdel Hamid, CEO of the Social Housing and Mortgage Finance Fund (SHMFF), total mortgage financing in Egypt reached $1.7 billion (EGP 81.2 billion) as of March 2025, benefiting 617,500 individuals through partnerships with 22 banks and eight mortgage firms.
The government has also supported the sector with $208.6 million (EGP 10.1 billion) in cash subsidies, with the average mortgage size standing at around $2,716 (EGP 131,500). Since 2014, approximately 2.1 million Egyptians have applied for housing initiatives, resulting in nearly one million housing units completed or under construction.
Ongoing projects include 54,600 eco-friendly homes across nine cities and 27,944 middle-income and investment units in 15 cities and governorates. These initiatives reinforce the government’s long-term commitment to affordable housing and improving access to mortgages for low- and middle-income families.
The latest securitization by Bedaya, facilitated by EFG Hermes, is therefore not only a milestone in the company’s financial history but also a key enabler for broader housing affordability and capital market growth in Egypt.
