MNT-Halan, an Egyptian fintech company, has raised $400 million in equity and debt financing from local and global investors in order to create inclusive financial services in North African countries.
Chimera Abu Dhabi provided MNT-Halan with over $200 million in equity in exchange for more than 20% of the company. Furthermore, the company is in advanced discussions with top international investors to raise $60 million in primary capital. MNT-valuation Halan’s will exceed $1 billion following the completion of these investments.
The company also announced two securitizations totaling $140 million with Commercial International Bank (CIB), Egypt’s largest private sector bank, via subsidiaries Tasaheel Microfinance Company (Tasaheel) and Halan Consumer Finance (Halan). Tasaheel has securitized $100 million of its loan book in its second securitization issuance.
These investments demonstrate MNT-continued Halan’s confidence in its value proposition, management team, and superior technology, while also enabling international expansion. Other major global and regional growth investors, including Development Partners International (DPI), Apis Growth Fund II, and Lorax Capital Partners, contributed $120 million in Q3 2021.
MNT-digital Halan’s ecosystem includes business loans, consumer finance, payments, and e-commerce, all of which are backed by Neuron, the company’s proprietary technology, and is dedicated to bringing seamless financial services to unbanked and underbanked customers in Egypt and the surrounding region.
Seif Fikry, CEO of Chimera Abu Dhabi, said, “We are thrilled to be part of Egypt’s greatest fintech success story. MNT-Halan’s upward trajectory and momentum reflect the management team’s realization of its extraordinary vision to transform a high touch business by seamlessly infusing an unparalleled proprietary tech platform while increasing product depth for its target customer segment.”
MNT-Halan Founder and CEO, Mounir Nakhla, added, “As one of the region’s premier and most progressive investors, Chimera Abu Dhabi brings a unique and dedicated understanding of our business. Having the backing of Chimera Abu Dhabi is of significant support to the execution of our strategy.
The timing of the transaction is also a testament to our ability to significantly increase our revenues and open new revenue streams while growing our bottom line, despite the macro-economic situation. I am excited for what lies ahead as we continue to grow both organically and inorganically by offering cutting-edge financial products and services locally and internationally to empower the underserved.”
In its first securitization since its inception in 2021, Halan Consumer Finance has securitized $40 million of its loan book. Both offerings were oversubscribed. The offerings reflect the combined securitized loan books’ high quality, diversity, and granularity, with 246,000 contracts and a strong cash pay-back ability. Given the current inflationary environment, the proceeds will be used to fuel the company’s expanding loan book.
MNT-securitization Halan’s program has the capacity to securitize up to $250 million more. Both securitizations are divided into four tranches, with MERIS rating Prime 1 for the first three and A for the fourth (Middle East Rating & Investor Service).
Abu Dhabi Commercial Bank, Al Ahli Bank of Kuwait, Al Baraka Bank, Arab Africa International Bank, Agricultural Bank of Egypt, ABC Bank, NI Capital, National Bank of Egypt, and the Housing and Development Bank were among the regional and local financial institutions that took part.
The investment transactions were advised by White & Case, Shearman and Sterling, Lexence, and Matouk Bassiouny & Hennawy. CIB served as the securitizations’ financial advisor and general arranger, with National Bank of Egypt serving as a co-financial advisor and underwriter.
Underwriters included Arab Africa International Bank and NI Capital. The securitizations were advised by Matouk Bassiouny & Hennawy. Eterna Partners served as communications consultants.