Egyptian fintech super app MNT-Halan has announced that its wholly-owned subsidiary Tasaheel has securitised around US$150 million of its loan book in the first issuance of a US$600 million programme with Commercial International Bank (CIB), Egypt’s largest private sector bank.
Having begun life as a ride-hailing app for two- and three-wheeler vehicles back in 2018, MNT-Halan has morphed into a super app of sorts, and in the process become Egypt’s largest and fastest-growing lender to the unbanked.
The startup’s proprietary fintech ecosystem connects customers, vendors and micro-enterprises through its consumer facing app, merchant app, distributed lending and payment processing software, and payment solutions, as well as offering services such as ride-hailing and logistics.
Disrupt Africa reported in September of last year the company had secured a US$120 million investment by major global and regional growth investors to further develop its product and expand internationally, and earlier this week it acquired B2B e-commerce startup Talabeyah. Now it has securitised around US$150 million of its loan book in the first issuance of a US$600 million programme with CIB.
Oversubscribed by 2X, the offering reflects what MNT-Halan said is the “high quality, diversity, and granularity” of its portfolio, consisting of 137,000 contracts and a robust cash pay-back ability. Participating regional and local financial institutions included Abu Dhabi Commercial Bank, Al Ahli Bank of Kuwait, Al Baraka Bank, Agricultural Bank of Egypt and the Housing and Development Bank.
The issuance, divided into four tranches, has been rated Prime 1 for the first three and A for the fourth by Middle East Rating and Investor Service (MERIS). The proceeds will fuel the company’s accelerated growth across multiple lending business lines and MNT-Halan’s expansion into new verticals.
“We are especially pleased with the confidence that investors have placed in our company. CIB’s role was instrumental. This transaction marks our first securitisation 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 capitalising on synergies and venturing into new verticals,” said MNT-Halan CEO Mounir Nakhla.
