Business | Banking
IFC to invest in mezzanine notes backed by Tamweel
IFC, the private sector arm of the World Bank Group, yesterday said it intends to invest in mezzanine notes backed by assets issued by Tamweel, a Dubai-based provider of Islamic home finance.
- Staff Report
- Published: 00:24 July 2, 2007
Dubai: IFC, the private sector arm of the World Bank Group, yesterday said it intends to invest in mezzanine notes backed by assets issued by Tamweel, a Dubai-based provider of Islamic home finance.
IFC's investment of up to $20 million will support the first multitranche mortgage-backed securities, based on Sharia-compliant financing, to be issued from the UAE.
The transaction will serve as a guide for other originators of mortgage assets in the region and spur improvement of the legal and regulatory framework for domestic asset-backed securitisations.
"The investment demonstrates IFC's support for the Emirates National Securitisation Corporation, which had been appointed to structure this transaction as a way to help develop capital markets, enhance access to long-term financing, and make home ownership more affordable," IFC said yesterday.
Potential
"IFC recognises the housing sector's potential for growth in the region. The corporation has invested more than $308 million to promote housing finance in countries including Afghanistan, Egypt, Lebanon, Pakistan, and the West Bank and Gaza."
Jyrki Koskelo, IFC Director for Global Financial Markets, said: "Access to housing finance in the Middle East and North Africa is limited when compared to markets in Asia, Eastern Europe, and Latin America and the Caribbean. Our strategy is to work with partners such as Ensec to create structures that increase access to housing finance markets."
Housing finance is a priority for IFC due to its significant social and economic impacts. IFC has played an essential role in the sector in other regions by helping develop mortgage finance and capital markets while providing funding to key players.
"This mezzanine investment will help develop long-term capital markets in the GCC and expand availability of Islamic finance products," said Lee Meddin, IFC Deputy Treasurer and Global Head of Structured Finance.
Share this article
Popular in Business
-
Budget travel
Airlines in the region
Take a pictorial look at some of the budget airlines in GCC
Business Editor's choice
-
New law to protect investor rights
Dubai land department is studying legislation to protect property purchasers
-
Global Village
Revamped layout featuring four cultures to greet visitors this season
-
Cloud computing is here to stay
Managing security effectively is critical when sharing data over the internet
