Ollin Mortgage Finance Securitizes EGP 3.31 Billion in Landmark Egyptian Issuance

Ollin Mortgage Finance, a subsidiary of GlobalCorp, has successfully finalized its second mortgage securitization bond issuance, totaling EGP 3.31 billion. This significant transaction follows formal approval from the Financial Regulatory Authority (FRA) and represents a major step in the expansion of securitized instruments within the Egyptian market.

The issuance was executed as part of the company’s third securitization program. To cater to a wide range of investor preferences and risk profiles, the deal was structured into three distinct tranches, each receiving specific ratings from Middle East Ratings and Investor Services (MERIS).

Detailed Breakdown of the Securitization Tranches

The EGP 3.31 billion issuance was divided into three tranches with varying tenors and credit ratings to ensure broad market appeal:

• First Tranche: Valued at EGP 1.6 billion with a 25-month tenor, carrying an AA+ rating.
• Second Tranche: Valued at EGP 955 million with a 37-month tenor, carrying an AA rating.
• Third Tranche: Valued at EGP 775 million with a 49-month tenor, carrying an A- rating.

Mohammed Abdelwahab, CEO of Ollin Mortgage Finance, characterized the transaction as the largest mortgage securitization issuance recorded in Egypt to date. He further highlighted the company’s rapid scaling, noting that Ollin Mortgage Finance has completed two issuances totaling EGP 5.9 billion in just eight months.

Financial Consortium and Investor Participation

The complexity of the deal required a robust consortium of leading financial institutions. The transaction was structured and managed by a group of prominent advisors and arrangers, including:

• Arab African International Bank
• Commercial International Bank (CIB)
• Al Ahly Pharos
• AlBaraka Capital

The National Bank of Egypt acted as the subscription receiving bank, while Arab African International Bank also fulfilled the role of custodian. The issuance saw strong demand from a diverse group of institutional investors, including participation from CIB, Al Baraka Bank Egypt, Housing and Development Bank, Al Ahli Bank of Kuwait – Egypt, and Arab Banking Corporation – Egypt. According to the company, this high level of subscription underscores growing investor confidence in GlobalCorp’s financial stability and the broader securitization market.

About GlobalCorp and Ollin Mortgage Finance

Founded in 2015, GlobalCorp has established itself as a multifaceted financial services provider, offering leasing, factoring, securitization, consumer finance, and mortgage finance. The company is backed by a strong shareholder base, including Amethis, the European Bank for Reconstruction and Development (EBRD), and SPE Capital, under the leadership of founder and CEO Hatem Samir.

The success of this latest issuance reinforces the critical role that specialized mortgage finance subsidiaries play in providing liquidity to the Egyptian housing market and driving long-term economic growth through structured finance.

Key Takeaways

• Total Issuance: EGP 3.31 billion in mortgage securitization bonds.
• Regulatory Approval: Authorized by the Financial Regulatory Authority (FRA).
• Market Milestone: Recognized as the largest mortgage securitization issuance in Egypt to date.
• Rapid Growth: Ollin Mortgage Finance has issued EGP 5.9 billion in total over the last eight months.
• Investor Confidence: Strong participation from major regional banks, including CIB and Al Baraka.