In a significant financial move, MNT-Halan, an Egyptian microfinance lending and payments company, recently announced that it successfully raised $130 million through a securitised bond issuance. This achievement adds to the $400 million the company has secured through securitisation this year alone. The latest, initiated through Cl Capital, follows four earlier this year from CIB Egypt.
MNT-Halan is known for offering a range of financial services, including small- and micro-business lending, payments, consumer finance, and e-commerce solutions, making it Egypt’s first privately held technology unicorn with a valuation exceeding $1 billion. The company has managed to secure substantial financing this year by securitising its loan book, which has now reached an impressive $650 million and continues to grow at a rate of 4% to 5% every month.
According to a statement released by the company, MNT-Halan has ambitious plans to securitise a total of $550 million by the end of December, demonstrating its commitment to further expansion and growth in the Egyptian market. The recent $130 million securitisation was facilitated through the support of the local investment bank CI Capital.
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One of MNT-Halan’s significant strengths is its substantial customer base, with over 1.5 million active monthly users, as noted in the company’s statement. This impressive customer engagement further underscores its position as a leading financial technology company in Egypt.
All securitizations have received a Prime 1 rating for the short-term tranches, while the longer-term tranches have been assessed with ratings ranging from A to A+ by MERIS (Middle East Rating & Investor Service). In addition to CIB and CI Capital, several regional and local financial institutions have participated in this initiative. These institutions include Al Ahli Bank of Kuwait, Al Baraka Bank Egypt, Arab African International Bank, Arab African Investment Management (AAIM), MIDBANK, Misr Real Estate Asset Management Company, The Saudi Investment Bank, Bank ABC, Arab International Bank, Banque Misr, and بنك التعمير والإسكان HD Bank.
CEO Mounir Nakhla said, “We are seeing very strong demand for off-balance sheet funding as we enter 2024. This is primarily a result of the high quality of our underwriting. This gives us great comfort as our loan book of US$ 650 million is growing at 4–5% month-over-month. We are excited to continue launching new digital financial products in Egypt and beyond.”
A Closer Look at MNT-Halan’s Versatile Offerings
MNT-Halan’s journey began in 2018 as a ride-hailing service for two- and three-wheeled vehicles, but it has since evolved into a versatile super app. The company’s offerings extend beyond ride-hailing to include a consumer-facing app, a merchant app, distributed loan and payment processing software, as well as a range of payment solutions. Through these platforms, MNT-Halan seamlessly connects customers, vendors, and micro-enterprises, offering services like ride-hailing and logistics.
MNT-Halan’s impressive accomplishments have not gone unnoticed by regulators, as the Financial Regulatory Authority has granted the company micro, consumer, and nano finance licenses. This allows MNT-Halan to provide financial services to both enterprises and individuals across Egypt. Additionally, the company has secured the distinction of being the first entity to receive the Central Bank of Egypt’s independent electronic wallet license. This authorization enables MNT-Halan to digitally distribute, collect, and transfer money through mobile applications, further enhancing its position in the Egyptian financial technology sector.
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MNT-Halan’s recent financial success, innovative approach, and regulatory recognition underscore its pivotal role in serving the unbanked population and driving financial inclusion in Egypt. With further plans for growth and development, the company is poised to make a significant impact in the Egyptian and international financial technology landscape.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard