MNT-Halan, Egypt’s leading fintech company, has announced that its wholly-owned subsidiary, Tasaheel, has securitized approximately USD$150 million of its loan book in the first issue of a $600 million programme with Commercial International Bank (CIB), Egypt’s largest private sector bank. The funds will be used to boost the company’s growth across numerous lending business lines, as well as MNT-entry Halan’s into new verticals.
MNT-Halan CEO Mounir Nakhla
“We are especially pleased with the confidence that investors have placed in our company. CIB’s role was instrumental. This transaction marks our first securitization and ensures our continued growth as we expect our loan book to exceed US $2 billion over the next couple of years. This will be driven by our digital strategy capitalizing on synergies and venturing into new verticals,” MNT-Halan CEO Mounir Nakhla said.
Here Is What You Need To Know
- The offering, which was oversubscribed by 2X, illustrates the portfolio’s excellent quality, diversity, and granularity, with 137,000 contracts and a strong cash pay-back potential. Abu Dhabi Commercial Bank, Al Ahli Bank of Kuwait, Al Baraka Bank, Agricultural Bank of Egypt, and the Housing and Development Bank were among the regional and local financial institutions that took part.
- MERIS has assigned a Prime 1 rating to the first three tranches and an A rating to the fourth (Middle East Rating & Investor Service).
“This transaction underscores our commitment to promoting sustainable long-term growth for the bank, our customers, and all our stakeholders and demonstrates our support for our customers throughout their journeys. We started with Tasaheel with a US c.$5 million facility in 2016 and are proud to see how fast they have grown. We work to tie our own financial success to the economic advancement of communities throughout Egypt with the ultimate goal of driving financial inclusion. We are delighted to continue supporting a business that has solid economics and serves the needs of the unbanked,” Mennan Awadallah, Head of Debt Capital Markets at CIB, said.
A Look At What MNT-Halan Does
MNT-Halan is Egypt’s leading fintech ecosystem, as well as the largest and fastest growing unbanked and underbanked lender. The company was founded in 2018, however its roots date back to 2010. It is headquartered in Cairo, Egypt. MNT-Halan was designed to bank the unbanked digitally and to replace cash with electronic alternatives. Small and micro company lending, payments, consumer finance, and e-commerce are all part of the MNT-Halan digital ecosystem. MNT-Halan provides more than 4 million customers in Egypt, with c.1 million monthly active users, including 3.1 million financial clients and 1.8 million loans. The Financial Regulatory Authority has granted MNT-Halan micro, consumer, and nano finance licences, allowing it to provide services to both enterprises and people throughout Egypt. It has also secured the Central Bank of Egypt’s first independent electronic wallet licence, allowing it to distribute, collect, and transfer money digitally via mobile applications.
MNT-Halan Bond issuance MNT-Halan Bond issuance
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. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh