EFG Hermes Finalizes $32.2M Bond Deal for Bedaya Mortgage Finance
EFG Hermes announced that its investment banking team has completed advisory work on a $32.2 million (EGP 1.6 billion) securitized bond for Bedaya Mortgage Finance.
This is Bedaya’s seventh securitization since the company started, and the fifth under the Capital for Securitization program.
The bond is backed by Bedaya’s receivables portfolio and was divided into four parts (tranches), each with different repayment periods and credit ratings given by MERIS (Middle East Rating and Investors Service):
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Tranche 1: $3.5 million (EGP 171.3 million), 13 months, rated AA
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Tranche 2: $11.4 million (EGP 552.8 million), 36 months, rated A
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Tranche 3: $13.3 million (EGP 646.2 million), 60 months, rated A-
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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 deal shows strong investor trust in Bedaya and highlights EFG Hermes’ role in creating financial solutions that improve liquidity and support long-term growth.
EFG Hermes acted as the sole financial advisor, manager, underwriter, and arranger of the deal. The bond was underwritten by the National Bank of Egypt, Al Baraka Bank, and CIB. Bank NXT and ABC joined as investors, with the National Bank of Egypt also acting as placement agent. Dreny & Partners provided legal advice, and Baker Tilly was the auditor.
Mortgage Market in Egypt
In March, Mai Abdel Hamid, CEO of the Social Housing and Mortgage Finance Fund (SHMFF), said that Egypt’s total mortgage financing reached about $1.7 billion (EGP 81.2 billion). This financing supported 617,500 people through 22 banks and eight mortgage companies.
The government also provided $208.6 million (EGP 10.1 billion) in direct cash subsidies. On average, each client received a mortgage of about $2,716 (EGP 131,500).
Since 2014, 2.1 million Egyptians have applied for housing programs, with nearly one million housing units for low-income citizens completed or in progress. Of these, 721,000 units have already been delivered, and 251,000 are still being built.
The latest housing phases are also adding 54,600 eco-friendly units in nine cities, plus 27,944 middle-income and investment units across 15 cities and governorates.
These projects underline the government’s focus on affordable housing and making mortgages more accessible to low- and middle-income families in Egypt.
Published: 3rd September 2025
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