Grace Ashiru
MNT-Halan, Egypt’s first unicorn, and a rapidly expanding fintech firm, announced the completion of five securitised bond issuances in 2023, executed by its consumer finance and microfinance subsidiaries. This recent funding round, led by CI Capital, adds to the four previous tranches secured from CIB Egypt.
Mounir Nakhla, the company’s founder and CEO, shared his insights: “As we step into 2024, the demand for off-balance sheet funding is robust. The superior quality of our underwriting processes largely drives this demand. Our confidence is bolstered by our growing loan portfolio, currently valued at $650 million and witnessing a monthly growth rate of 4-5%. We’re eager to keep introducing innovative digital financial solutions in Egypt and other markets.”
MERIS (Middle East Rating & Investor Service) has assigned a Prime 1 rating to the short-term tranches of all the securitizations and an A or A+ rating for the longer-term tranches. The securitizations saw participation from a mix of regional and local financial institutions, including Al Ahli Bank of Kuwait, Al Baraka Bank, Arab African International Bank, Arab African Investment Management, Midbank, Misr Asset Management, SAIB Bank, ABC Bank, Arab International Bank, Banque Misr, and the Housing and Development Bank, alongside CIB and CI Capital.
CIB and CI Capital played critical roles in advising and orchestrating both transactions. CIB took up the responsibilities of Custodian and Underwriter, while Arab African International Bank functioned as the Custodian Bank.
KPMG was in charge of the audit process. GB for Securitization took on the task of securitizing the bonds, and the legal aspects were handled by the law firm Maatouk, Bassiouny, and Hennawy.
The enthusiasm of investors to purchase these bonds is a testament to their confidence in MNT-Halan’s business strategy, the robustness of its loan portfolio, and its ability to effectively collect its debts.
The securitization of over $400 million since the start of the year further underscores the growing investor confidence in this venture.
