Egyptian Fintech Unicorn MNT-Halan Secures $76.5M Securitisation Deals

Egyptian fintech unicorn MNT-Halan has successfully completed three securitisation issuances with a combined value exceeding EGP4 billion, or US$76.5 million. These transactions were executed for its two subsidiaries, Halan Consumer Finance and Tasaheel for Finance. The deals mark a significant step in securing diversified funding for the company's continued expansion.

Securitisation involves pooling various types of contractual debts, such as consumer loans and micro business loans, and then selling them as marketable securities to investors. This process allows MNT-Halan to convert future cash flows from its existing loan portfolios into immediate capital. The successful completion of these issuances strengthens MNT-Halan’s access to a broader range of funding sources and supports its ongoing financing activities across Egypt.

The latest transactions include a specific issuance of EGP528.5 million, equivalent to US$10.1 million, for Halan Consumer Finance. Tasaheel for Finance secured two separate issuances, valued at EGP1.2 billion (US$23 million) and EGP2.28 billion (US$43.6 million) respectively. Since its founding in 2018, MNT-Halan has disbursed over US$15.5 billion in loans and served more than 8 million customers globally.

These securitisation deals are crucial for MNT-Halan as they provide substantial capital to fuel its ambitious growth strategy within the Egyptian market. By diversifying its funding sources, the company reduces reliance on traditional financing methods, thereby enhancing its financial resilience and operational flexibility. This capital injection will enable MNT-Halan to further expand its lending and financial services, particularly targeting the unbanked population in Egypt. For investors, the successful issuances demonstrate MNT-Halan's robust ability to attract significant capital and execute complex financial transactions.

MNT-Halan was founded with the core mission to digitally bank the unbanked and substitute traditional cash transactions with electronic solutions. Its comprehensive digital ecosystem encompasses small and micro business lending, various payment solutions, consumer finance products, and e-commerce services. The company has previously secured significant funding, including a EGP3.4 billion (US$71.4 million) securitised bond issuance in October of last year. MNT-Halan also received undisclosed equity funding in June, which valued the company at US$1.4 billion, firmly establishing its unicorn status.