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Monday, 21 June 2021

EFG, TMG, GB Capital mortgage arm Bedaya plans securitization before 2021 is out

Mortgage provider Bedaya is planning to sell securitized bonds backed by its receivables before the end of the year, EFG Hermes Finance CEO Waleed Hassouna, whose company is a partner in Bedaya, told Al Mal. The sale would come as Bedaya is looking to set up more branches across the country from a current three branches, and widen its customer base to include potential homeowners as well as companies, Hassouna said without revealing how much Bedaya is looking to raise from the planned securitized bonds sale. Bedaya’s loan portfolio currently stands at EGP 300 mn, he reportedly said. We reached out to EFG Hermes for comments on the story, but have yet to hear back as of dispatch time.

What is Bedaya: Bedaya was set up in 2019 as a joint venture between EFG Hermes, Talaat Moustafa Group and GB Capital. It then started operations in August last year. Bedaya announced this week it has just rolled out a new mortgage finance mobile application and online platform.

The securitization market has been lukewarm in 2021: Real estate developer Palm Hills Development and Arabia Investments Holding’s consumer finance subsidiary Rawaj were the only two companies to close an issuance of asset-backed securities so far into the year.

But the pipeline is deep: Everyone from Sodic, Misr Italia and Edge Holding to EFG Hermes, Sarwa Capital and Raya have announced plans to securitize parts of their portfolios, but all of them are yet to see the light of day.

IN OTHER DEBT-RELATED NEWS-

Gasco gets USD 200 mn syndicated loan for facility expansion: A group of eight local banks led by the National Bank of Egypt have arranged a USD 200 mn (c. EGP 3.1 bn) syndicated loan for state-owned natural gas company Gasco, which plans to use the proceeds to finance expansions at its Western Desert Gas Complex in Amriya, banking sources told us, confirming a report by Al Mal that quoted sources it said are in the know. The lenders include Banque Misr, Banque du Caire, CIB, QNB Al Ahli, the Arab African International Bank, Bank Audi. Each bank will provide USD 25 mn of the total amount.

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