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.

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.

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"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.

Via Gulf News.