Egyptian fintech startup MNT-Halan said Monday that its wholly-owned subsidiary, Tasaheel, has securitized $150 million of its loan book and plans to use the proceeds to boost the company’s growth in the lending business.
MNT-Halan in a statement said that the issuance, which was oversubscribed two times, is the first of a $600 million securitization program that is being managed by the Commercial International Bank.
The issuance received participation from both regional and local banks including Abu Dhabi Commercial Bank, Al Ahli Bank of Kuwait, Al Baraka Bank, Agricultural Bank of Egypt and the Housing and Development Bank.
“This transaction marks our first securitization and ensures our continued growth as we expect our loan book to exceed $2 billion over the next couple of years,” Mounir Nakhla, CEO of MNT-Halan said in a statement.
The portfolio comprises 137,000 contracts and a strong cash pay-back ability and the issuance was divided into four tranches, with the first three rated Prime 1 and the fourth rated A by the Middle East Rating and Investor Service (MERIS).
Founded in 2018, Cairo-based MNT-Halan claims to be Egypt’s largest and fastest-growing lender to the unbanked. With one million monthly active users, the company serves over four million customers in the North African country, of which 3.1 million are financial clients and 1.8 million are borrowers.
Last week, the company acquired business-to-business (B2B) e-commerce platform Talabeyah for an undisclosed amount as part of its broader strategies to expand its portfolio and build a “comprehensive digital ecosystem.”
MNT-Halan, which counts private equity firms Apis Growth Fund II and Development Partners International as well as venture capitals including Middle East Venture Partners and Endeavor Catalyst among its backers, raised $120 million in September.
