MNT-Halan, Egypt’s leading fintech startup, and its fastest-growing lender to the unbanked and underbanked announced yesterday that Tasaheel, its subsidiary acquired recently, has securitized $150 million of its loan book in the first issuance of a $600M program with Commercial International Bank (CIB), Egypt’s largest private sector bank.
This comes just a few days after the company acquired Talabeyah, an e-commerce startup that provides digital FMCG services directly to small merchants and retailers. The proceeds of the issuance, according to MNT-Halan, will fuel its accelerated growth across multiple lending business lines and its expansion into new verticals.
The issuance was 2X oversubscribed, reflecting the portfolio’s high quality, diversity, granularity (137,000 contracts), and strong cash pay-back ability.
Abu Dhabi Commercial Bank, Al Ahli Bank of Kuwait, Al Baraka Bank, Agricultural Bank of Egypt, and the Housing and Development Bank are among the regional and local financial institutions participating in the round.
The issuance was divided into four tranches, with the first three rated Prime 1 and the fourth rated A by Middle East Rating & Investor Service (MERIS).
Commenting on the issuance, Mounir Nakhla, CEO MNT-Halan said, “We are especially pleased with the confidence that investors have placed in our company. Again, CIB’s role was instrumental. This transaction marks our first securitization and ensures continued growth as we expect our loan book to exceed $2bn over the next couple of years.”
CIB served as the transaction’s financial advisor and general arranger, with the National Bank of Egypt serving as a co-financial advisor and underwriter. Underwriters included Arab Africa International Bank and NI Capital. Maatouk, Bassiouny, and Hennawy provided legal counsel.
“This transaction underscores our commitment to promoting sustainable long-term growth for the bank, our customers, and all our stakeholders,” said Mennan Awadallah, Head of Debt Capital Markets at CIB. We started with Tasaheel in 2016 with a $5 million facility and are proud of how quickly they have grown.”