Egypt

MNT-Halan Closes $130 Million Securitization

MNT-Halan Closes $130 Million Securitization

MNT-Halan, Egypt’s first unicorn and fastest growing fintech, announced today that it has closed five tranches of securitized bond issuances through its microfinance and consumer finance wholly-owned subsidiaries in 2023, to date. The latest, coming in earlier this week, at $130 million through CI Capital, follows four earlier this year from CIB Egypt. All issuances were over-subscribed.

The appetite for these issuances reflects the resilience of MNT-Halan’s business model, the high quality of its loan book, and a robust pay-back ability of the underlying loan book. Having securitized over $400 million since the beginning of the year underscores the continued momentum of investor confidence.

Commenting on the transactions, Founder and CEO of MNT-Halan Mounir Nakhla said, “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.”

All the securitizations have been rated Prime 1 for the short-term tranches, while the longer-term tranches varied between A and A+ by MERIS (Middle East Rating & Investor Service).  In addition to CIB and CI Capital, participating regional and local financial institutions included 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.

CIB and CI Capital served as financial advisors and general arrangers of the respective transactions. CIB and Arab African International Bank served as underwriters and custodians.  KPMG served as auditors.  Maatouk, Bassiouny and Hennawy served as legal advisors and GB for Securitization acted as the securitization company of the bonds.

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