Tamweel Mortgage Finance issues Middle East’s 1st Mudaraba sukuk
Updated 12/21/2025 2:55:00 PM
Arab Finance: Tamweel Mortgage Finance has issued a Mudaraba sukuk to finance an acquisition, raising EGP 5.52 billion in a transaction, marking its first issuance in the Middle East for this purpose, as per an emailed press release.
The sukuk proceeds will be used to finance Tamweel’s acquisition of a portfolio of under-construction residential units owned by the Arab Company for Projects and Urban Development, a subsidiary of the Talaat Moustafa Group.
This issuance represents Tamweel’s first sukuk and the first by an Egyptian mortgage finance company. The sukuk received an AA- credit rating and reflects the company’s efforts to diversify its funding sources through Islamic finance instruments.
The transaction is part of Tamweel’s broader expansion plans, following three securitization issuances totaling EGP 5 billion.
A fourth issuance is currently under preparation and is expected to increase the company’s cumulative issuance volume beyond EGP 7 billion.
The sukuk was structured in cooperation with Talaat Moustafa Group, with Al Ahly Pharos acting as issuance advisor, alongside legal, audit, ratings, and financial advisors.
Subscription coverage was provided by a consortium of banks.
Tamweel also noted the role of the Financial Regulatory Authority (FRA) in supporting market development, pointing to growth in both the number and value of financing contracts during 2025.
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