Cairo - Mubasher: Tamweel Mortgage Finance has raised EGP 5.52 billion through the issuance of the Middle East’s first Mudaraba sukuk, according to a press release.
The offering aims will be used to acquire under-construction residential units from Arab Company for Projects and Urban Development, a subsidiary of Talaat Moustafa Group (TMG Holding).
Proceeds will support Tamweel Mortgage’s strategic expansion while diversifying its funding sources through innovative financial instruments.
The inaugural sukuk, rated 'AA-', marks the first issuance by an Egyptian mortgage finance company and sets a regional benchmark for Islamic finance.
The issuance follows Tamweel Mortgage’s previous three securitization deals at a combined value of EGP 5 billion, with a fourth issuance underway that is expected to raise cumulative volumes above EGP 7 billion.
The sukuk was structured in collaboration with TMG Holding, with Al Ahly Pharos serving as issuance advisor and supported by legal, audit, ratings, and financial consultants.
Meanwhile, the subscription coverage came from a consortium of banks, reflecting robust investor interest in Islamic finance instruments.
Karim El-Batouty, Deputy Managing Director of Tamweel, described the transaction as a pivotal moment for the company, emphasizing its transformative impact and reinforcing Tamweel’s position in deploying advanced Islamic financing solutions for real estate.
