Grace Ashiru
In a notable financial development, MNT-Halan, a prominent Egyptian microfinance lending and payments firm, has recently announced the successful raising of $130 million through securitized bond issuance. This achievement adds to the $400 million the company has secured through securitization this year alone. The most recent funding initiative, facilitated by Cl Capital, follows four previous ones led by CIB Egypt earlier in the year.
MNT-Halan is renowned for its diverse financial services, encompassing small- and micro-business lending, payments, consumer finance, and e-commerce solutions. This has earned it the distinction of being Egypt’s first privately held technology unicorn, boasting a valuation that surpasses $1 billion. The company has consistently secured substantial financing by leveraging the securitization of its loan portfolio, which now stands at an impressive $650 million and continues to exhibit steady monthly growth from 4% to 5%.
As stated in an official announcement by the company, MNT-Halan is determined to securitize a total of $550 million by the conclusion of December. This underscores their intense dedication to expanding and flourishing within the Egyptian market. The recent securitization of $130 million was made possible with the assistance of the local investment bank CI Capital.
MNT-Halan’s notable strength lies in its substantial customer base, boasting more than 1.5 million active monthly users, as highlighted in the company’s official statement. This remarkable customer engagement firmly reinforces its status as a leading player in Egypt’s financial technology sector.
All securitizations have garnered a Prime 1 rating for the short-term tranches, while the longer-term tranches have received ratings ranging from A to A+ by MERIS (Middle East Rating & Investor Service). Beyond CIB and CI Capital, numerous regional and local financial institutions have participated in this initiative. These institutions encompass Al Ahli Bank of Kuwait, Al Baraka Bank Egypt, Arab African International Bank, Arab African Investment Management (AAIM), MIDBANK, Misr Real Estate Asset Management Company, The Arab International Bank, Banque Misr, Bank ABC, Saudi Investment Bank, and بنك التعمير والإسكان HD Bank.
Mounir Nakhla, the CEO, expressed, “As we step into 2024, we’re witnessing a robust demand for off-balance sheet funding, largely attributed to the exceptional quality of our underwriting. This instill confidence in us, especially as our loan portfolio, valued at US$ 650 million, continues its steady growth at a rate of 4–5% month-over-month. We eagerly anticipate the ongoing introduction of innovative digital financial products, both in Egypt and expanding beyond.”
Exploring the Diverse Capabilities of MNT-Halan
In 2018, MNT-Halan embarked on its journey as a ride-hailing service catering to two- and three-wheeled vehicles. However, its evolution has been remarkable, transforming it into a multifaceted super app. Beyond ride-hailing, MNT-Halan now encompasses a consumer-facing app, a merchant app, distributed loan and payment processing software, and an array of payment solutions. Through these integrated platforms, MNT-Halan fosters seamless connections among customers, vendors, and micro-enterprises, offering an extensive range of services, including ride-hailing and logistics.
MNT-Halan’s remarkable achievements have garnered recognition from regulatory authorities, as the Financial Regulatory Authority has granted the company licenses for microfinance, consumer finance, and nanofinance. These licenses empower MNT-Halan to offer financial services to businesses and individuals throughout Egypt. Furthermore, the company has become the inaugural entity to receive an independent electronic wallet license from the Central Bank of Egypt. This license allows MNT-Halan to digitally distribute, collect, and transfer funds through mobile applications, further solidifying its prominent position within the Egyptian financial technology sector.
MNT-Halan’s recent financial achievements, groundbreaking strategies, and official endorsements highlight its crucial role in catering to Egypt’s underbanked demographic and fostering financial inclusion. With ambitious expansion strategies on the horizon, the company stands ready to leave a substantial mark on both the Egyptian and global financial technology sectors.
