Huge deal: Clal acquires from Mizrahi-Tefahot 80% of the mortgage portfolio

A huge deal in the mortgage sector: Clal Insurance and Finance buys from Mizrahi-Tefahot 80% of the mortgage portfolio, for a total of NIS 2.5 billion.

The bank will continue to hold 20% of the portfolio and operate the entire portfolio for Clal

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30/08/2022

Tuesday, August 30, 2022, 11:28 am Updated: 11:41 am

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Mizrahi Bank.

The bank explains that this is another move whose purpose is to free up risk assets in order to allow the bank to continue growing (Photo: ShutterStock)

Precisely at a time when alarming figures are being published about borrowers' ability to meet the monthly mortgage repayments, Clal Insurance and Finance and Mizrahi-Tefahot signed a deal according to which the insurance company will purchase from the bank 80% of the bank's mortgage portfolio, with a total monetary amount of NIS 2.5 billion.

The bank will continue to hold 20% of the portfolio and operate it for Clal Insurance and Finance.

From Mizrahi-Tefahot's point of view, this is another move whose purpose is to free up risk assets in order to allow the bank to continue growing.

In 2015, Mizrahi-Tefahot was the first bank to carry out a transaction of selling a mortgage portfolio and since then the bank has signed more than 10 transactions of this type.

In terms of Clal Insurance and Finance, the purchase of the portfolio enables diversification of the investment portfolio through a stable and solid anchor such as a mortgage portfolio - an industry in which failure rates are very low.

Yossi Dori, deputy to the CEO and manager of the investment division of Clal Insurance and Finance (Photo: Sion Farage)

"An appropriate return for colleagues"

Yossi Dori, Deputy CEO and Head of the Investments Division of Clal Insurance and Finance

, stated: "We welcome the deal with Mizrahi-Tefahot, and joining a leading partner in the banking sector.

Transactions for the purchase of mortgage portfolios, which we have done in the past, are high-quality and stable credit transactions that reflect an appropriate return for Clal Insurance and Finance colleagues." On

behalf of Mizrahi-Tefahot, the transaction was led by the bank's syndication unit under the management of

, which operates within the business division headed by

. The legal side was managed by

, director of the legal advice division in the bank's legal division.

On behalf of Clal Insurance and Finance, the transaction was led by

, director of the credit system at Clal Insurance and Finance, which is part of the investment division led by

.

The legal side was managed on behalf of the Mitar office,

.

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• Mizrahi Bank

• Clal Insurance

• mortgages