Latest news with #FRA-licensed
Daily News Egypt
a day ago
- Business
- Daily News Egypt
Bonyan Reports Strong 9% Growth in Gross Asset Value for H1 2025, Outpacing Inflation
Bonyan for Development and Trade announced that its Gross Asset Value (GAV) reached EGP 17.41 billion in the first half of 2025, marking a 9% increase from EGP 15.96 billion in FY 2024. The growth outpaced Egypt's 7.9% headline inflation for the same period, translating to a GAV of EGP 171.2k per square meter as of June 2025. The valuation, conducted by Global Appraisal Tech (GAT) — an FRA-licensed independent valuator — was based on a comparable sales approach using recent market transactions for similar vacant properties. A 5% discount was applied to reflect the bulk nature of Bonyan's asset portfolio, and the figures exclude income-generating potential from leased properties. CEO Tarek Abdelrahman highlighted Bonyan's positioning as a Real Estate Operating Company (REOC), which not only manages and owns assets but also reinvests cash flows to service acquisition liabilities and pursue new opportunities. 'Our model is well-suited for emerging markets where capital appreciation potential is high. GAV remains the most relevant measure of our performance, and our results continue to exceed inflationary pressures,' Abdelrahman said. He added that the company's current GAV represents a significant improvement from its implied Enterprise Value per square meter at IPO, which stood at EGP 95.5k. 'This performance affirms our belief in the intrinsic value and resilience of Bonyan,' he noted.
Daily News Egypt
6 days ago
- Business
- Daily News Egypt
FRA issues first-ever rules for digital platforms investing in real estate investment fund certificates
The Board of Directors of the Financial Regulatory Authority (FRA), chaired by Mohamed Farid, has issued Decision No. 125 of 2025, introducing—for the first time—comprehensive rules for establishing digital platforms dedicated to investing in real estate investment fund (REIF) certificates. The regulation sets out a framework allowing individuals to invest in fractional ownership shares of real estate units through investment certificates issued by REIFs and offered via licensed digital platforms authorised for promotion, underwriting, and receiving subscriptions. The move aligns with the FRA's strategy to expand access to innovative, low-cost investment products that cater to diverse market participants, thereby advancing financial, investment, and insurance inclusion. In a statement on Wednesday, the FRA said the decision aims to establish a unified legal framework to govern all digital platforms offering REIF certificates, ensuring a secure, transparent, and efficient investment environment. It also facilitates the regularisation of existing platforms and helps real estate developers understand the requirements for presenting their projects to investors through licensed digital platforms linked to REIFs. The decision follows extensive consultations between the FRA, leaders of the real estate development sector, and operators of electronic platforms that sell real estate shares to the public. These discussions reflect the FRA's policy of engaging stakeholders to produce regulations with tangible impact. As a result, three companies currently operating real estate investment platforms have applied to regularise their status. Under the decision, a digital platform for REIF certificates is defined as a technology-driven business model licensed by the FRA to conduct non-banking financial activities, allowing the subscription to and redemption of REIF certificates. Such platforms must display all relevant data for transactions, provide full disclosures for investor monitoring, and publish periodic pricing based on FRA-licensed valuations conducted in line with approved standards. All contracts and certificates must be stored electronically with FRA-licensed entities. Investor Registration and Safeguards Platforms may register investors only after verifying they meet the criteria—most notably, passing a knowledge test prepared by the platform and approved by the FRA after reviewing educational materials on the investment instrument and associated risks. Platforms must use FRA-approved secure payment channels, open the necessary accounts under Central Depository and Registry Company procedures, and list licensed REIFs only after obtaining FRA approval. Subscriptions and redemptions must follow the FRA-approved summary prospectus, which must be published on the platform and include the minimum subscription level for a successful issue and a summary feasibility study. Communication, Transparency, and Compliance To maintain investor trust, platforms must establish direct communication channels between the REIF and investors, promptly answer queries, log complaints with outcomes, and submit quarterly complaint reports to the FRA. All software, IT infrastructure, and databases must be FRA-approved. Before registration and investment, platforms must disclose conditions for registration, the platform manager's details, complaint and dispute resolution procedures, operational risks, and refund processes if an issue is cancelled or under-subscribed. Investors must have access to full disclosures for each issue, including the approved summary prospectus, audited financial statements, payment schedules, minutes of certificate holders' meetings, capital increase details, current issue size, outstanding certificates, default execution terms, and semi-annual net asset value reports. Additional mandatory disclosures include the feasibility study for each project, asset fair value (as assessed by an FRA-registered valuer), purchase prices and justifications, details of asset sales compared with market values, dividend distribution dates and values, property insurance documents, and any legal rulings or measures affecting property status or investor decisions. Any unresolved breach of the investment policy must be disclosed within a week and updated weekly thereafter. Material Events and Subscription Procedures Platforms must promptly disclose all material events affecting fund investments, including new obligations, borrowing by the fund, and significant property-related information. The subscription process must include a digital form with an explicit investor acknowledgment of associated risks, a dedicated bank account for each issue, and electronic confirmation of payment. Funds must be returned immediately if an investor withdraws within the permitted period or if the minimum subscription level is not reached. Platforms must provide a real-time coverage indicator and notify investors upon successful subscription, while also informing the Central Depository and Registry Company to register ownership and issue digital investment certificates. Redemption Rules Redemptions must follow the approved prospectus and may be funded from available liquidity, new subscriptions, or loans. Redemption requests can only be met up to the legal limit of 20% of total issued certificates. Any certificates reacquired through redemption must be sold within a year or cancelled to reduce fund size, and such certificates carry no voting or dividend rights. Platforms must use FRA-approved digital redemption forms detailing the certificate holder's information, quantity of certificates, payment schedules, and latest net asset value as calculated by the administration services company. Accountability and Liability All parties involved—the platform manager, REIF, investment manager, administration company, subscriber, redemption applicant, and the Central Depository and Registry Company—are prohibited from issuing false or misleading information and are liable for compensating affected parties for inaccurate disclosures.
Daily News Egypt
17-06-2025
- Business
- Daily News Egypt
Nawy secures $23m debt financing from leading Egyptian institutions to expand mortgage offering
Nawy, Africa's largest proptech platform, has secured $23m in debt financing from ten of Egypt's top financial institutions. The funding will be used to scale Nawy Now, the company's FRA-licensed mortgage product offering flexible payment plans and fast approvals for ready-to-move homes—helping more buyers move in now and pay later. The financing will enable Nawy Now to expand its capacity to finance residential properties and make homeownership more accessible. It will also support the company's broader working capital needs as it continues to transform the real estate experience in Egypt. 'Securing this level of financing from Egypt's leading financial institutions is a strong vote of confidence in what we're building at Nawy,' said Amr Malek, Chief Financial Officer of Nawy. 'Our mortgage product sits at the centre of a much broader ecosystem that serves as a one-stop shop for the real estate industry,' added Omar El Barouny, Managing Director of Nawy Now. 'This funding allows us to scale that ecosystem and provide more people with a seamless path to owning a home.' The newly secured debt package strengthens the core of Nawy's business model, powering the synergies behind its end-to-end real estate platform. From discovery to post-purchase services, Nawy offers customers a fully integrated homeownership journey. The platform enables users to search for and purchase homes through a tech-enabled interface, while managing all paperwork, legal verifications, and due diligence—ensuring a streamlined, hassle-free experience. Through Nawy Now, customers gain access to flexible mortgage financing tailored to their needs. Beyond the initial transaction, Nawy continues to deliver long-term value with resale services and post-sale support. With Nawy Unlocked, homeowners can also generate rental income, maximising returns on their property investments. Backed by the confidence of Egypt's financial sector, Nawy is well-positioned to expand its operations and push the boundaries of the proptech space. As demand for reliable, flexible paths to homeownership continues to rise, Nawy remains committed to leading innovation and inclusion in Egypt's real estate market.
Daily News Egypt
06-05-2025
- Business
- Daily News Egypt
200,000 Egyptians invest EGP 2.1bn in gold funds: FRA
Approximately 200,000 citizens have invested EGP 2.1bn in regulated gold investment funds, Egypt's Financial Regulatory Authority (FRA) said, emphasising it oversees investment in fund units, not direct gold trading. The FRA clarified that under Capital Market Law No. 95 of 1992, its role is to regulate how FRA-licensed investment managers offer gold investment fund units, not to license general precious metal trading. The authority warned against recent calls for direct gold purchases suggesting FRA licensing for metal traders, stating this is incorrect as its register is for companies dealing with investment managers, not the public. Direct gold trading falls under other laws, including Trade Law No. 17 of 1999 and Law No. 68 of 1976. The FRA urged citizens to be cautious, report misuse of its name by gold traders, and verify company licences. It advised investors buying physical gold directly to ensure they receive the metal. To protect investors, the FRA has established rules for gold investment funds, including requirements for hallmarked metals with clear ownership and the use of registered trading companies and custody providers. Currently, three FRA-approved gold investment funds hold these investments: AZ-Gold by Azimut Asset Management, an Al Ahly Financial Investments fund, and the Beltone-Evolve Gold Investment Fund. The regulatory framework, based on Capital Market Law Article 35 and FRA Decision No. 71 of 2021, allows investment funds to deal in metals. Funds must detail their investment policies, target returns, liquidity, profit distribution, and risks in their prospectuses, and insure assets with an FRA-licensed entity.
