Nawy Now offloaded another EGP 633 mn of mortgages to a fund, freeing up balance-sheet capacity

Nawy’s mortgage arm Nawy Now has picked up another EGP 633 mn from institutional investors after Synergy Capital’s asset-management firm, Misr for Financial Investments (MFIC), closed the second issuance of its Shariah-compliant, Ijarah-based fixed-income fund, the two said in a statement (pdf). The book came in 43% above the first issuance and takes the program to some EGP 1.08 bn against a five-year, EGP 5 bn target — a little over a fifth of the ceiling, by our math. The cash isn’t funding new mortgages. “We’re essentially selling receivables off our balance sheet — the fund buys our mortgage portfolio, which lets us offload it and free up balance sheet capacity,” Nawy Group CFO Amr Malek tells EnterpriseAM.

How it works: Nawy Now writes the mortgage, warehouses it on bank facilities, then sells batches of seasoned loans to the fund at net present value, booking a slim margin between the rate it lends at and the rate it funds at, Malek tells us. “We don’t have recourse to the fund. There are protections in place for investors — a reserve account and a default ins. policy — which together help mitigate risk for whoever’s holding this portfolio,” he says. And the loss sequence is spelled out: “In practice, if a customer defaults, the reserve account absorbs it first, and the ins. policy covers the fund for any shortfall beyond that,” he adds.

The fund doesn’t get the whole book, either. “We’re deliberate about which portfolio goes into the fund — that’s a joint call with the asset manager, because both investor protection and Nawy’s standing depend on it,” Malek says.

The first issuance — EGP 443 mn, which closed early and oversubscribed in October 2025 — has distributed some EGP 118 mn to certificate holders across three payment cycles with no missed payments, MFIC and Nawy Now say. It returned 6.63% in 1Q 2026 and 6.25% in 2Q — a cumulative 12.9% in the first half — according to FRA data cited in the statement. Qualified individual investors took 22% of the book alongside cornerstone institutions including Al Baraka Bank, Allianz Life Egypt, and Misr Ins. Holding.

Why a fund and not a bond: “Securitization is really a volume game, not a value game — rating agencies apply the same transaction-count and concentration thresholds whether it’s consumer finance or mortgages,” Malek tells us. “A fund structure doesn’t need that same volume; it’s built around value, which made it the more practical route for us.”

What’s next: Quarterly distributions on the second issuance begin this month, MFIC and Nawy Now say, with further issuances to follow as Nawy Now’s origination book grows. Malek won’t put a clock on them: “We time issuances around three or four internal metrics we track — there’s no fixed schedule or target. When the numbers and timing line up, we go.” The program also plans to “reach Gulf and other international markets through licensed placement partners.”

Nawy Now writes mortgages with tenors of up to seven years — against a five-year fund — and its parent has raised some USD 52 mn in equity since 2019 from investors including Partech, e& Capital, Shorooq Partners, and Endeavor Catalyst.

ADVISORS- MFIC acted as asset manager, with Synergy Capital as financial advisor, promoter, and placement lead. Mubasher for Securities and Bond Trading handled subscription and redemption, Aliedean Weshahi and Partners (ALC) was legal counsel, Catalyst Partners was fund administrator, and Crowe Hegazy provided audit and tax advisory.

The funding market is moving fast. Non-bank mortgage companies extended some EGP 19.96 bn in financing over the first five months of 2026, up 20.4% y-o-y, but refinancing volumes rose 167.3% to EGP 2.43 bn over the same period, according to the FRA’s monthly report — a sign that originators are increasingly recycling portfolios rather than sitting on them.