The first unicorn and fastest-growing fintech company in Egypt, MNT-Halan, revealed that it has closed five tranches of securitized bond issuances through its wholly-owned subsidiaries in consumer finance and microfinance in 2023 thus far.
This latest investment through CI Capital follows four others from CIB Egypt.
Mounir Nakhla, founder and chief executive officer of MNT-Halan, made the following statement: “We are seeing very strong demand for off-balance sheet funding as we enter 2024. This is primarily a result of the high quality of our underwriting. This gives us great comfort as our loan book of $650 million is growing at 4-5% month-over-month. We are excited to continue launching new digital financial products in Egypt and beyond.”
MERIS (Middle East Rating & Investor Service) has given all of the securitizations a Prime 1 rating for the short-term tranches and a rating of A or A+ for the longer-term tranches. 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 were among the regional and local financial institutions that participated alongside CIB and CI Capital.
Both transactions were advised by and general arranged by CIB and CI Capital. The Custodian and Underwriter was CIB, and the Custodian Bank was Arab African International Bank.
Auditing was handled by KPMG. The bonds were securitized by GB for Securitization, and the law firm of Maatouk, Bassiouny, and Hennawy served as legal counsel.
Investors’ willingness to buy these bonds shows how confident they are in MNT-Halan’s business model, the strength of its loan book, and the company’s capacity to collect on its debts.
The fact that over $400 million has been securitized since the beginning of the year is further evidence that investor confidence is still on the rise.
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