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DEBT WATCH | EnterpriseAM
Tasaheel closes Egypt’s largest-ever corporate bond issuance
Tasaheel closes EGP 2.5 bn bond issuance: MNT-Halan microfinance subsidiary Tasaheel closed a EGP 2.5 bn corporate bond issuance — Egypt’s largest to date — the company said in a press release (pdf). The issuance came in two tranches with tenors of 12 and 36 months and received a BBB+ investment-grade rating from Middle East Ratings and Investors Service (MERIS). (Tap or click the headline above to read this story with all of the links to our background as well as external sources.)What they said: “This issuance supports our ability to meet growing demand for business loans and reinforces the scale and efficiency of our lending operations. It reflects confidence in our business model and our commitment to serving more small and medium-sized businesses across Egypt,” Tasaheel Managing Director Islam Ayyoub said.Advisors: CI Capital acted as the issuance manager and bookrunner. KPMG served as financial auditor, while Matouk Bassiouny & Hennawy acted as legal counsel.Tasaheel has been active on the debt market: By our count, this marks Tasaheel’s third bond issuance of the year — the firm kicked off 2025 with a EGP 5.1 bn securitized bond issuance and a month later followed that up with a EGP 7 bn social sukuk issuance.

Tuesday, 6 May 2025

KUDOS | EnterpriseAM
MNT-Halan, Nahdet Misr CEO Dalia Ibrahim, Banque Misr, NBE rack up the awards
MNT-Halan was named the most innovative fintech company in Africa for a second consecutive year in 2025 by Global Finance, the New York-based financial magazine said in a statement. The company received the same title in Global Finance’s list for 2024.PLUS- Nahdet Misr’s CEO Dalia Ibrahim received the 2025 PublisHer Excellence Award in the lifetime achievement category for her contributions to Arab publishing, according to a statement (pdf).AND The National Bank of Egypt was named Egypt’s best financing agent and syndicated loans promoter during 1Q 2025, according to Bloomberg rankings, the lender said in a statement (pdf). Meanwhile, Banque Misr was named the region’s best mandated lead arranger and bookrunner for syndicated loans during the quarter, it said in a statement (pdf).ALSO- Several local law firms went home with awards at the Chambers Middle East Awards 2025, including:Matouk Bassiouny & Hennawy was recognized as Egypt’s corporate and M&A law firm of the year;Baker McKenzie (Helmy, Hamza & Partners) was named Egypt’s banking and finance law firm of the year;Adsero Ragy Soliman & Partners took home the Egypt litigation law firm of the year award;Youssef + Partners was named Egyptian arbitration law firm of the year.

Thursday, 17 April 2025

El Marakby Steel is carrying out a USD 30 mn export push
INVESTMENT El Marakby Steel is partaking in a USD 30 mn, three-year plan to ramp up global exports, Chairman Hassan Elmarakby told Al Arabiya. The strategy kicked off in 2024 and will see the company expand its product range and upgrade its steel grades through a USD 10 mn investment, in addition to building a solar power station to feed its factory at an estimated cost of USD 20 mn. The steel maker aims to record USD 120 mn in exports this year, up 10-15% y-o-y, the chairman said. MANUFACTURINGHomegrown TBS Holding plans to carry out a EGP 250 mn local expansion plan over the coming three years, which will include a new factory aimed at tripling its production capacity, CIO and co-founder Sameh El Sadat told Al Mal. The new factory is expected to be completed in early 2026 and is part of a wider plan for the F&B player to expand its local market presence. ICYMI- The company plans to invest USD 40 mn in the Saudi market over the next three years. F&B player had announced that it will open a commercial-scale bakery in Saudi Arabia in partnership with Saudi food and beverage player Shahia Investments under a strategic partnership inked between the two sides.CAPITAL MARKETS-FRA expands settlement fund trading capacity: The Settlement Guarantee Fund (SGF) can now allow members to settle trades worth up to 6x their capital contributions for transactions with shorter-than-usual settlement periods, according to a statement by the Financial Regulatory Authority (FRA). The move — mandated under a FRA decision issued last year — is expected to boost market liquidity by enabling faster settlements and reducing counterparty clearing risk. Fund members may also raise their capital contributions to increase their trading limits. SGF? The fund is a safety net managed by Misr for Central Clearing, Depository, and Registry, which ensures all trades on the EGX are settled on time — even if one party defaults. It covers both cash and securities shortfalls, helping to reduce counterparty risk, boost market stability, and build investor confidence. EXPANSION-Madinet Masr plans to expand its non-residential portfolio, with a focus on commercial and administrative developments, Hapi Journal reports, citing CEO Abdallah Sallam. The property developer sees this segment as its future backbone, with long-term revenue potential to support growth, Sallam said.And expanding into the hospitality sector: Sallam also revealed that Madinet Masr is set to launch a hospitality arm this year to handle hotel operations and room management. Another subsidiary is also in the pipeline, with details to be announced soon.FINTECH-MNT-Halan receives regulatory green light to implement e-KYC: Local fintech player MNT-Halan secured approval from the Financial Regulatory Authority to add electronic Know Your Customer (e-KYC) to its services and allowing for a “fully digital onboarding experience,” according to a company statement (pdf). The move will allow users to open and activate their accounts instantly. MEDIA-Google tapped Aleph’s Mediam Group to be its official media sales partner in Egypt, a press release reads. The partnership will see Mediam offer businesses on-the-ground support through a team of certified specialists, while Google will continue to manage select clients directly.

Monday, 24 March 2025

CAPITAL MARKETS | EnterpriseAM
Azimut partners with MNT-Halan to launch a EGP 250 mn real estate investment fund
Azimut, MNT-Halan are setting up a real estate investment fund: Asset manager Azimut and fintech player MNT-Halan are awaiting the green light from the Financial Regulatory Authority to launch their real estate investment fund, with an initial capital of EGP 250 mn, Azimut Managing Director Ahmed Abou El Saad told EnterpriseAM. Abou El Saad expects the fund to go live in 2Q 2025. The two players have plans to boost the fund’s capital to EGP 2 bn within two years, he told us. (Tap or click the headline above to read this story with all of the links to our background as well as external sources.)More in the pipeline for Azimut: The asset manager is looking to launch two other investment funds this year, the managing director said. What’s new about this fund? The fund will be open to both retail and institutional investors while offering greater flexibility for unit holders in terms of liquidation and transferability — without being listed on the EGX, Abou El Saad explained to us. This structure is designed to make the fund accessible to a wider range of investors.Azimut’s fixed income fund Maashy AZ will increase its capital to EGP 300 mn to take advantage of recent regulatory changes allowing private pension funds to invest more in equities, Abou El Saad told us. The fund’s founding entities include the Suez Canal Authority employees fund, the Judicial Authorities employees’ fund, and the Ezz Dekheila employees’ fund.The capital hike comes in response to new FRA regulations introduced in January, which increased the maximum allocation for private pension funds in open-ended investment funds and publicly traded stocks.

Thursday, 20 March 2025

MNT-Halan enters the UAE market with Halan Advance launch. PLUS: Hassan Allam Utilities + ACWA Power, Somabay + Taqa Arabia, AMEA Power, Monoprix + TMT
FINTECH- MNT-Halan enters the UAE market with Halan Advance launch: Egyptian fintech leader MNT-Halan has expanded into the UAE with the rollout of its early salary access service, Halan Advance, targeting the Emirates’ over 3.7 mn underbanked expatriate community, the fintech unicorn said in a statement (pdf). MNT-Halan has a target of building its customer base in the country to 250k by the end of next year.What they said: “The GCC is a powerful hub for financial innovation, and launching in the UAE marks a significant step in our regional expansion,” MNT-Halan CEO Mounir Nakhla said. RENEWABLES-#1- Hassan Allam and ACWA’s Gulf of Suez wind farm secures OPEC Fund backing: The OPEC Fund for International Development has approved a USD 40 mn loan for local energy and infrastructure leader Hassan Allam Utilities and Saudi renewables giant ACWA Power’s 1.1 GW wind farm in the Gulf of Suez — poised to be the largest wind power project of its kind in the Middle East, a statement from the fund reads. The financing adds to USD 510 mn already raised, including USD 200 mn from the EBRD and USD 170 mn from the AfDB, for the USD 1.1 bn project.This isn’t the only renewables project in Egypt with OPEC backing: The OPEC Fund is also backing a ACWA’s 200 MW solar project in Kom Ombo, which set to be the largest privately owned solar plant in the country and power 130k households when operational. #2- Somabay and Taqa Arabia open Egypt’s largest renewables-powered water desalination plant: Our friends at Somaby and Taqa Arabia inaugurated the first 3.7 bn cbm phase of a solar-powered water desalination plant that will provide safe and clean water for the resort on the Red Sea, according to an EGX disclosure (pdf). A contract for a second 3.7k cbm phase of the project has been signed, with the addition set to be completed by May 2025.#3- FMO is a mulling a further USD 30 mn investment into AMEA Power’s Abydos solar project: Dutch development bank has proposed a USD 30 mn loan to support the development, construction, operation, and maintenance of a 150 MW battery energy storage system at AMEA Power’s 560 MW Abydos solar plant in Kom Ombo, according to a disclosure from the development bank. The proposed investment follows a USD 36 investment from the lender for the solar plant that was approved in 2022.EXPANSION-Monoprix to launch in Egypt in 2025: French retail chain Monoprix is entering the Egyptian market through a partnership with Circle K franchise operator TMT for Food and Beverages, with plans to open 15-20 stores annually starting 2025, the French company said in a statement (pdf).

Thursday, 12 December 2024

A look into Egypt’s non-banking financial sector
How have Egyptian consumers and businesses managed to remain resilient amid soaring prices? The Egyptian consumer has shown great resilience under the pressures that accompanied the float of the EGP and high inflation. What has been driving this resilience and what patterns are we witnessing — and what concerns should be monitored?We gathered key players in Egypt’s consumer finance sector during this year’s Enterprise Finance Forum — including Boston Consulting Group London Managing Director and Partner Michal Panowicz, MNT-Halan founder and CEO Mounir Nakhla, and Valu CEO Walid Hassouna — to discuss how players in the sector and Egyptian consumers are handling inflation and whether banks and non-banking financial institutions (NBFIs) are developing sustainable business models.Setting the stage: This year has been a rather eventful one — from the 200 bps interest rate hike in February and the subsequent 600 bps hike in March, the Ras El Hekma agreement, to the float of the EGP. MNT-Halan started out the year with a strong performance in the first quarter, then saw a really slow second quarter, but 3Q was kinder to the market, with the firm seeing improved sales and installment collections, Nakhla said. Valu experienced a similar challenge after seeing tremendous growth in 2023.How did that translate into customer spending? Customers became more conservative in their purchases after the Ras El Hekma agreement, knowing that even though products were available, interest rates were bound to decrease sooner or later, Hassouna said. What about the global landscape at large? The state of global interest rate conditions push us to think about what regulators and the government can do to boost competitiveness and growth, Panowicz said. He pointed to the ability of NBFIs and independent players to innovate, expand financing access to customers, and anticipate risks to avoid negative impacts on the sector's credibility. Regulatory interventions tend to take a long-term view of shaping the sector rather than reacting to short-term fluctuations, he continued. “In Egypt, people calculate the real cost of the loan. They understand how much they are paying in admin fees, in interest, and in everything else, and they actually compare the price of the product they are buying in cash or if they buy them through Valu or MNT-Halan,” Hassouna said. After years of relying on instant credit approval, players are now focusing on unique and innovative products, relying on analysis of consumer behavior to meet needs, and ensuring a seamless experience amid competition from 42 companies.MNT-Halan has a different approach, it focuses on providing a comprehensive solution for consumers by offering one service after another, working to satisfy the needs of different consumer profiles, Nakhla said. The company’s entry into money market funds also represents a significant development, as it helps shift overall consumer behavior, Nakhla continued, saying that this — along with incorporating entertainment features on the app — will be a game-changer, as it will enable the company to develop a social network, Nakhla said. “The environment we operate in is full of challenges and we have to be smart. We need to be fast and as data-driven as possible.”.The impact of rising rates and the devaluation: What happened on the ground was that liquidity was sucked from the market and when the exchange rate stabilized at EGP 60 to the USD, traders and retailers immediately wanted to liquidate inventory and goods they had purchased at exchange rates of EGP 65-74, Nakhla said. Meanwhile, consumers saw the real value of these goods at around EGP 50 to the USD, which created some market stagnation during 2Q 2024, Nakhla added. But a rebound quickly followed: Despite a generally inflationary environment, business activity resumed, and the economy rebounded, with retailers being able to clear their stock, gain more cash flow, and pay off their installments, and consumers also became more comfortable with carrying out their repayments, he added. The volume of non-performing loans (NPLs) increased but remained at a non-alarming level. So, what’s the real concern in terms of default rates? Credit losses are at an acceptable level as long as the business still looks exciting and very attractive, according to Nakhla. In lending, you will face both good and bad credit, so NPLs shouldn’t be the main factor to focus on in your business at any given moment, Hassouna said. Managing NPLs in the long term involves managing every step of the lending value chain and then deploying modern tools, according to Panowicz, who said that this will rely on two main elements — responsibly injecting more money and relying on machine learning to better and more dynamically identify customers when onboarding them. If the macroeconomic picture returns to normal, most players in the sector will be able to make additional profits, as they will be able to reduce or reverse some of their provisions, Hassouna concluded. Nakhla agreed, noting that companies are already looking at risk-adjusted returns, and balancing risks across the product mix is essential to reaching that point. “I think we just need to be more stringent in our scoring models and acceptance rates. Credit is quite simple — if you get the right people through the door, the people are more likely to pay,” Nakhla said, stressing the need to evaluate two things: customers’ ability to pay and willingness to pay.Let’s talk expansion: Expanding in such an environment requires having the right mix of products, as some products are inherently riskier. If a company is giving clients cash loans or credit to buy a mobile phone that they resell for cash, that’s a higher-risk product — but if you have a diverse list of products, you can hedge against the risks, Hassouna said. He added that clients receiving cash loans for electronics account for only 30% of Valu’s business, compared to 85% three years ago. “As we grow our appetite for higher-risk customers and our approval rates move up, what happens is that our turn-in-applications go up in a way that is not proportional to our risk appetite, but in fact, three or four times higher. So, you end up gaining more low-risk customers, despite the short-term risk," he said. What needs to change in leasing? Leasing services need to be offered to consumers, rather than be limited to SMEs, Hassouna said, adding that opening the market up to consumers would provide more products that are already in demand — competition is currently limited between leasing companies and corporate banks. “Leasing is still doing very well… but there are issues with funding and not catering for consumers. Solve that, and leasing services will do very well in the market,” he concluded. And on the regulatory front: While the CBE has tightened regulations on banks’ financing of leasing companies to limit the risks associated with the activity — setting a cap on the total credit facilities and investments in securitization portfolios for leasing companies at 5% of the bank’s total loan and credit facilities portfolio — the Financial Regulatory Authority has taken on the burden of market growth by focusing as much as possible on crowdfunding or attempting to amend current regulations for money market funds and fixed-income funds to enable them to acquire unrated bonds. Correction: We originally incorrectly attributed to Walid Hassouna's comments about leasing to Mounir Nakhla. The story has been amended.

Tuesday, 1 October 2024

FINTECH | EnterpriseAM
MNT-Halan wants to go global
MNT-Halan wants to go global: Fintech leader MNT-Halan wants to expand its footprint across the globe to become a global player. It has an expansion plan that will see it acquire entities across a number of markets, including Saudi Arabia, as well as east Africa and South Africa, founder and CEO Mounir Nakhla said during an event that Enterprise attended. (Tap or click the headline above to read this story with all of the links to our background as well as external sources.)Already underway: The company, last week, announced that it fully acquired Turkish commercial finance company Tam Finans and will likely announce another acquisition within the coming 12-18 months, Nakhla added.The details of the transaction: The firm financed the acquisition through its recently-raised funds. The acquisition boosted MNT-Halan’s portfolio: The company’s loan book is estimated to be at around USD 900 mn following the acquisition, with Tam Finans accounting for a third of the amount. MNT-Halan’s monthly lending volume stands at around EGP 2.5 bn, and is expected to rise to EGP 3-3.5 bn by the end of the year, Nakhla added.ICYMI: MNT-Halan recently raised USD 157.7 mn in a funding round expected to bankroll the country’s international expansion plans. “While Egypt remains our primary market, we are committed to revolutionizing access to financial services through technology beyond Egypt’s borders,” Nakhla said at the time.What’s next? MNT-Halan is considering a number of different avenues to expand its operations in the coming period, including going public and transforming into a digital bank that operates locally, Nakhla said. The company has ambitious growth targets: It wants to achieve an annual growth rate of up to 50% in the local market and 70% in the medium-term. The company plans to have SME lending make up almost half of its portfolio by the end of 2025, up from its current 20%. Also in the pipeline: More securitization and cybersecurity. The fintech leader wants to raise EGP 24 bn from securitized bonds issuances this year — it has already raised half that amount during the first half of the year, Nakhla said. The company is focused on investing in cybersecurity due to the recent wave of cyberattacks.

Tuesday, 30 July 2024

M&A WATCH | EnterpriseAM
Fintech leader MNT-Halan expands into Turkey with acquisition of Tam Finans
MNT-Halan enters the Turkish market: Fintech leader MNT-Halan has fully acquired Turkish commercial finance company Tam Finans from Actera Group, according to a press release (pdf). The company did not disclose the terms of the transaction.The upside: Tam Finans’ over USD 300 mn loan book provides MNT-Halan with a significant foothold in a market with 85 mn consumers and a low household debt-to-GDP ratio, offering significant growth potential for digital financial services in the coming period.The plan: MNT aims to combine “Tam Finans’ credit models, distribution capabilities, and management team with MNT Halan’s technology, customer-facing app, and financial muscle” in order to “complete the product offering and give greater confidence to all its stakeholders,” MNT-Halan founder and CEO Mounir Nakhla said.ICYMI: MNT-Halan recently raised USD 157.7 mn in a funding round expected to bankroll the country’s international expansion plans. “While Egypt remains our primary market, we are committed to revolutionizing access to financial services through technology beyond Egypt’s borders,” Nakhla said at the time.MNT’s second big buy this year: MNT-Halan acquired Pakistani microfinance firm Advans Pakistan Microfinance Bank back in March.Advisors: Maatouk Bassiouny & Hennawy, Esin Attorney Partnership, and Van Campen Liem were MNT’s legal advisors. Clifford Chance was the seller’s legal advisor. PwC was financial and commercial advisors to the buyer and Boston Consulting Group (BCG) was financial and commercial advisors to the seller.

Sunday, 28 July 2024

FINTECH | EnterpriseAM
MNT-Halan raises USD 157.7 mn from international investors
MNT-Halan raises funds for international expansion: Fintech leader MNT-Halan has raised USD 157.7 mn in a funding round that will contribute to the company’s international expansion plans, the company said in a press release (pdf). The details: The fresh funding includes USD 40 mn from the International Finance Corporation, with the rest coming from repeat investors including our friends at private equity firm Development Partners International (DPI), Egypt-focused investment firm Lorax Capital Partners, funds managed by Apis Partners, Lunate, and GB Corp.Focusing on Egypt but aiming beyond: The company plans to channel these new funds into plans to expand into international markets, following on from MNT-Halan’s acquisition of Pakistani microfinance firm Advans Pakistan Microfinance Bank in March. “While Egypt remains our primary market, we are committed to revolutionizing access to financial services through technology beyond Egypt’s borders,” founder and CEO Mounir Nakhla said.Remember: MNT-Halan raised USD 400 mn in its last funding round in 2023 — our friends at Abu Dhabi-based Chimera Investments invested some USD 200 mn in the firm in a transaction that saw it acquire a 20% stake in MNT-Halan. The fintech firm raised USD 120 mn in 2021.Advisors: Maatouk Bassiouny & Hennawy and Van Campen Liem served as legal advisors to MNT-Halan, while Hogan Lovells, Freshfields, and Gibson Dunn provided legal counsel to the subscribers. Arqaam Capital served as financial advisor to GB Corp.

Sunday, 21 July 2024

KUDOS | EnterpriseAM
MNT-Halan featured twice on Global Finance’s list of most innovative fintech companies
MNT-Halan was named the most innovative fintech company in the Middle East and Africa in 2024 by Global Finance, the company said in a statement (pdf). The company was the only one on the list to secure two awards for separate regions.Two products were in the spotlight: MNT-Halan highlighted two of its products in its submission — the Halan superapp, which offers a range of financial solutions from consumer finance to investment products, and Neuron, the core banking system it rolled out in 2021.MNT is a frequent guest in our Kudos section: The company was on the Financial Times’ list of Africa's fastest growing companies in 2023 and Forbes' 2023 list of top 30 fintech companies in the Middle East.

Wednesday, 24 April 2024

KUDOS | EnterpriseAM
Egyptian startups aplenty on Forbes Middle East fintech list
Egyptian startups dominate Forbes’ top 50 Mideast fintech firms list: Forbes is out with its annual ranking of the Middle East’s top 50 fintech companies and 13 Egyptian companies made the cut — the most of any country in the region. The UAE and Saudi Arabia came in second with 11 companies each on the list. The Egyptian fintech companies featured on the list:#2- Fawry#8- MNT-Halan#11- Aman Holding#15- Valu#18- Thndr#20- Paymob#22- Contact Financial#26- Paysky#29- Masria Digital Payments#31- Money Fellows#39- Lucky One#44- Telda#50- Klickit

Monday, 8 April 2024

Tobacco distributors can hike their prices by up to 12%. PLUS: News from Halan, Post for Investment, Al Gaweesh Group
RETAIL- Gov’t greenlights cigarette price hike: Tobacco distributors got the government’s approval to hike prices by up to 12%, according to a document seen by Enterprise. State-owned tobacco giant Eastern Company said it will raise its prices by a lot less than the 12% cap, the company’s CEO Hany Aman told Asharq Business.Remember: Tobacco distributor Al Mansour International Distribution Company, Philip Morris, and Eastern Company all hiked their prices earlier this year. INVESTMENT-#1- Post for Investment has a new asset management arm in the works: Egypt Post’s investment arm Post for Investment (PFI) will launch a new asset management company dubbed PFI Asset Management focused on stocks, fixed-income securities, and specialized funds in Egypt, PFI managing director and CEO Ahmed Ali Abdelrahman told Asharq Business. The company aims to manage EGP 5 bn-worth of assets within a year of launching, Abdelrahman added.What’s next? The company has already received initial approval for obtaining a license and is expecting to receive the final greenlight this quarter.** We sat down with Abdelrahamn last month for a special Ramadan edition of My Morning Routine. Check it out here.#2- Al Gaweesh Group absorbs subsidiaries: Homegrown investment company Al Gaweesh Group subsidiaries Green Modeling Contracting, LARZ Developments, Green Modelling Power Solutions, Integrated Solutions Consultancy, Kreemers, POV, and Marble will now be consolidated under the Al Gaweesh Group name, the group said in a statement (pdf).FINTECH-Halan upgrades app: Halan, the consumer finance arm of MNT-Halan, has added new features to its “financial superapp,” including giving users access to potential investments such as gold purchases, the company said in a statement (pdf).

Thursday, 4 April 2024

FINTECH | EnterpriseAM
MNT-Halan snaps up struggling Pakistani microfinance bank
MNT-Halan acquires struggling Pakistani microfinance bank: Fintech leader MNT-Halan has fully acquired Advans Pakistan Microfinance Bank (APMBL) after the transaction received final approvals from the State Bank of Pakistan and the Competition Commission of Pakistan, Wamda reports. The terms of the agreement remain undisclosed, but it entails the purchase of 100% of APMBL from the Luxembourg-headquartered Advans Group. About the bank: APMBL received its microfinance banking license from the State Bank of Pakistan in 2021 and has since compiled losses of PKR 1.3 bn (c. USD 4.7 mn) — accounting for over 65% of the company’s share capital. The latest from MNT-Halan: Its consumer finance arm Halan closed an EGP 971.5 mn securitized bond issuance, the third and final of an EGP 3 bn securitization program in January.

Wednesday, 20 March 2024

STARTUPS | EnterprisePM
Africa was not immune to last year’s tech VC winter
It was a tough year for VC, and Egypt was no exception: Egypt was the third biggest destination for tech venture capital in Africa last year when measured by the number and value of transactions announced, global venture capital outfit Partech said in its annual report on tech VC funding for African startups. South Africa took the top spot by value, reeling in USD 549 mn in funding from 83 transactions, followed by Nigeria, where 111 transactions accounted for USD 469 mn in funding. Kenya came in fourth, with USD 335 mn from 67 transactions.The global picture: Global VC funding in 2023 fell 35% y-o-y to USD 345 bn, according to data from research firm PitchBook. The year also progressively worsened, with each quarter of 2023 recording lower VC transaction value than the one before it, PitchBook’s data shows. North America led the pack by volume and value of transactions during the year with 14.4k transactions worth USD 179.1 bn, followed by Asia (11.3k transactions worth USD 91.1 bn), then Europe (9.4k transactions worth USD 61.9 bn). Transaction volume + value in Egypt dropped significantly: Out of the top four performers in the continent, “Egypt is the most drastically impacted,” the report said. The number of transactions dropped 58% y-o-y to 60, while funding volume declined 45% y-o-y to USD 432 mn. However, the total volume “is hiding an even steeper decline as 60% of that amount went into a single [transaction],” namely MNT-Halan’s January funding round that saw it raise USD 260 mn equity financing in addition to another USD 140 mn from securitized bond issuances.Our biggest tech sectors: The vast majority (70%) of our tech VC funding for the year went into fintech, although that figure was skewed again because of MNT-Halan. Healthtech reeled in c.10% of Egypt’s tech VC funding, followed by e-commerce and enterprise. The “big four” of Africa all slipped: South Africa, Nigeria, Egypt, and Kenya continued to take the biggest slice of the tech VC pie in Africa, accounting for 79% of total equity funding volume (up from 72% in 2022) from 68% of all transactions in the continent (down from 77% in 2022). “Despite leading the market, all four countries witnessed a considerable decrease in funding due to prevailing market challenges,” the report notes. Nigeria saw a 59% y-o-y drop in equity funding last year, while Kenya similarly experienced a 56% y-o-y drop. South Africa’s decline was less steep, coming in at 34% y-o-y.But they’re still the “big four”: All growth stage VC funding transactions happened in these four countries, “seeming to indicate that in an uncertain market, later stage investors refocused again on larger, better known tech markets,” Partech said. These four countries also include three of Africa’s “largest economies and consumer markets” — Egypt, Nigeria, and South Africa.What drove the declines? In addition to pressure from the global VC downturn in 2023, each of these countries also grappled with individual economic challenges. These factors include currency devaluations in Nigeria and Egypt, which “contributed to uncertain investment environments, resulting in startup closures and investor pullback,” Partech reports.Beyond the big four, investors began pivoting towards Francophone African countries in 2023, according to Partech. “In 2023, Francophone Africa distinguished itself as a dynamic and growing force in the tech sector, defying broader market trends, and being the only region to demonstrate year-over-year growth both in the number of [transactions] and investor participation.” Francophone countries accounted for 68% of equity funding volume in Africa, excluding the big four, up from 38% the year prior. Morocco, Congo, Rwanda, Tunisia, and Senegal were all in the top 10 biggest countries for African tech VC funding in 2023, “highlighting the growing appeal and potential of these markets in the tech sector,” Partech said.

Thursday, 15 February 2024

| EnterpriseAM
Halan closes EGP 971.5 mn securitized bond issuance
Halan brings EGP 3 bn securitization program to a close: Halan, the consumerfinance arm of MNT-Halan, has closed an EGP 971.5 mn securitized bond issuance, the third and final of an EGP 3 bn securitization program, the company said in a statement (pdf). The six-tranche issuance is the first corporate securitization in 2024.Remember: Halan closed the second issuance in the program worth EGP 1.04 bn inSeptember of last year and the first EGP 978 mn issuance in December 2022.Advisors: CIB was the financial advisor, transaction manager, arranger, promoter andbookrunner. Matouk Bassiouny served as counsel, Hazem Hassan — KPMG’s Egypt branch — as auditor, and GB’s Capital for Securitization as custodian.

Wednesday, 10 January 2024

DEBT WATCH | EnterpriseAM
Tasaheel closes EGP 3 bn securitized bond issuance. PLUS: NUCA has another issuance in the wings.
There’s plenty more news from the nation’s red-hot securitization market, which has now seen the value of bonds taken to the market rise more than a third compared to the same time last year. UP FIRST- CI Capital has closed an EGP 3 bn securitized bond issuance for MNT-Halan’s microfinance subsidiary Tasaheel Finance, CI said in a statement (pdf). The four tranches of the issuance were rated Prime 1, A+ and A by the Middle East Ratings and Investor Services (MERIS) rating agency.There could be more to come soon: The issuance is the fourth in a three year, EGP 13 bn program that Tasaheel kicked off in June 2022 with an EGP 2.6 bn issuance, followed by an EGP 2.7 bn issuance in January, and an EGP 3.3 bn issuance in July. The company could sell another EGP 1.3 bn of securities before the year is out, according to targets announced in July.The debt market is booming right now, particularly in non-bank financial services, with securitization being a good tell “for companies to maintain their capital adequacy ratio within limits set by the Financial Regulatory Authority, as well as utilize issuance proceeds to reinforce the company's financial position, maximize profitability, and return on equity while using them as a hedge against inflation,” said Amr Helal, CEO for the sell side at CI Capital’s investment banking unit. Advisors:CI Capital acted as the sole financial adviser, issuance manager, and lead arranger. Matouk Bassiouny & Hennawy acted as the legal advisor and KPMG-Hazem Hassan Consulting was the auditor.DATA POINT- Egyptian companies have issued more than EGP 60.6 bn of securitized bonds so far this year, according to data tracked by Enterprise — 33% more than what was taken to market across the whole of 2022.NUCA READIES NEXT ISSUANCE-ALSO- Another huge issuance for NUCA? The New Urban Communities Authority (NUCA) is reportedly waiting on the Financial Regulatory Authority’s (FRA) approval and a credit rating report from MERIS before it goes ahead with another EGP15 bn issuance, Al Mal reports, citing sources it says are in the know. NUCA is hoping to start the issuance within weeks, according to the local media outlet, and use the fresh funds for infrastructure works for new cities under construction.Remember: NUCA in July closed an EGP 15 bn issuance, the largest in Egypt so far this year and the first of a EGP 30 bn program.Advisors:Al Ahly Pharos, CI Capital, and CIB are reportedly set to promote and manage the issuance. Dreny & Partners will act as counsel, and Baker Tilly as financial advisor. Alawwal Bank will act as custodian, while the National Bank of Egypt, Banque Misr, and Banque du Caire are expected to act as underwriters.

Thursday, 2 November 2023

How are fintech firms navigating high inflation and a drying up of VC funding?
The heyday of fintech in Egypt — marked by sky-high valuations an torrents of VC cash? That’s over. Today, fintech players are navigating volatile market conditions as funding dries up and competition for a piece of the fintech pie grows. But a lack of funding in no way means a lack of innovation, or a lack of prospects. There are still plenty of sectors ripe for growth in the sector, industry insiders say, but fintech players need to lean into the local market and the possibilities it offers — and suss out the fads from the sustainable, long-term growth prospects. We brought together two industry leaders at the Enterprise Finance Forum to walk us through exactly what those prospects are and how they are navigating the current environment. Joining us on stage were Ashraf Sabry, founder and CEO of Fawry, and Mounir Nakhla, MNT Halan’s founder and CEO. Interest rates + inflation have impacted fintechs’ lending operations: “It’s a tough market,” Nakhla said. The EGP devaluation means MNT Halan’s loan book was slashed in half in USD terms, he said, adding that high interest rates also hit them hard, because they lend on fixed interest rates and borrow in variable terms. Fawry and MNT Halan are doing well in spite of that: “I think business is really excellent. We are growing at more than 40% [this year] and we believe in our products,” Sabry said. “This year in USD terms, we’re growing 20%. In spite of everything, we managed through planning and execution to grow 20%,” Nakhla said, adding that MNT Halan views such times of economic turbulence as exciting and “as times when we can grow and gain market share.” So how do they manage? By recalibrating and growing our loan book, Nakhla said. For Sabry, it’s important to focus on EGP-denominated investments, rather than investments denominated in USD. Nakhla agreed.“As a matter of principle, I think if you lend in local currency, you should borrow in local currency,” he said. Lending is risky business, especially in a high inflation environment…: Consumer finance is a higher risk product than business loans, according to Nakhla. “Naturally, if I’m going to lend someone to consume, it’s higher risk than lending someone to invest,” he added, explaining that since most consumers are salaried, their disposable income drops significantly in a high inflation environment, making the capacity to service debt tougher. …but it plays a big role in our economy: “Consumer finance is a more challenging business, but I think we should be bullish about it,” Sabry said.“Every single individual experiences points in time where their need for money is not equal to their stream of income,” Sabry said, pinpointing education, weddings, and medical treatments as among the most common examples when people turn to consumer financial services. “There is a real need for consumer finance,” he said, adding that it takes into account the measurement of financial health, where you enable people to fulfill their needs while taking into account their ability to repay. With increased borrowing comes increased risk, but so far it’s nothing too serious: “It’s too early for a wide systemic risk [in the sector],” Sabry said, noting that accounting standards — which require an independent modeling company to evaluate your loan book — can show whether you have an elevated default risk. For Nakhla, it’s the same. “Our numbers say there is a slightly higher risk [in the sector], but nothing we cannot digest, nothing meaningful,” he said. In a higher interest rate environment, is BNPL a good idea? Nakhla is cautious when it comes to buy-now-pay-later services, which he said are a fad that came out with the likes of Swedish BNPL platform Klarna, Nakhla said. “They came out at a time when interest rates were very low and the whole concept was based on merchant rebates … from day one I said this doesn’t work in our interest rate environment,” he said. That’s why MNT Halan couples it with consumer financing — and relying on merchants for rebates. “What we're doing is not a three or six-month loan with small rebates,” he said. “What we're doing is we're charging normal borrowing rates, and we're getting a little extra from merchants for the rebates,” he added. In defense of BNPL: “[It’s] a small amount with very high turnover, and requires less capital to be deployed, with higher return on capital and early discovery of debt profiles,” Sabry said. “There are different models of BNPL services, for different profiles of customers, and for different needs,” Fawry’s CEO said. It’s looking good for ins.: “We are very bullish about ins.,” Sabry said. It can help boost people’s financial health, whether in terms of data distribution and processing or collection and disbursement, Sabry said. “Leveraging the masses is the best business in the world,” Sabry added, noting that it is a defensive sector in the sense that even in a recession, people need access to finance to eat and spend everyday, regardless of whether this increases or declines depending on market conditions. And there’s still a lot to do to achieve more financial inclusion: MNT Halan and Fawry focus most of their efforts on unbanked and underbanked populations in rural and remote areas. “Around 70-80% of our customers don’t come from Egyptian cities,” Nakhla said. “Upper Egypt contributes 35-40% of our business, and Delta contributes another 35-40%, while Greater Cairo and Alexandira make up less than 20%,” Nakhla said. “Financial inclusion is not just opening a bank account — that is only a very small part of it,” Sabry said. “Inclusion is about offering financial services that will help people rather than help the organization. Opening a bank account helps the organization, but giving them money, ins., enabling them to save small amounts of money is how you help the people,” Sabry said. At the end of the day, it’s about having an integrated fintech ecosystem with strong stakeholders: “At a time where you have very, very high inflation, I think it is imperative to have the right players channeling funds to the masses,” Nakhla said. With the presence of responsible players and institutions, alsonside a strong regulator, consumer finance firms will operate comfortably without worrying about whether or not people will be able to pay back their dues, he added. “We think that the more you integrate business, consumers, and small merchants into an integrated ecosystem, the better you understand the business and take better financial decisions,” Sabry said.

Wednesday, 11 October 2023

MOVES | EnterpriseAM
MNT-Halan lands new CFO, CMO + CIRA taps new senior advisor
MNT-Halan brings fresh faces to management: MNT-Halan has appointed Omar Elhamawy (LinkedIn) as chief financial officer and Sara Metwally (LinkedIn) as chief marketing officer, according to a press release (pdf). Elhamawy has more than 20 years of experience in financial management, serving as SODIC’s CFO for almost a decade and holding senior positions at Beltone Financial and CIB. Metwally has almost two decades of experience in marketing, and joins MNT-Halan after serving as Coca-Cola’s Africa director for end-to-end experience. CIRA taps Ain Shams president as senior advisor: Our friends at CIRA Education have tapped Mahmoud El Meteini (bio) as group senior advisor, according to a statement (pdf). El Meteini will also act as CEO of CAPMED, a EGP 100 mn hospital near the new capital in which CIRA owns 28%. El Meteini has been the president of Ain Shams University since August 2019, after serving as dean of the university’s medical faculty. He also sits on the boards of the Ain Shams University hospital and Cleopatra Hospitals Group.

Wednesday, 11 October 2023

DEBT WATCH | EnterpriseAM
EFG Corp-Solutions, Halan and Rawasi all take securitized bonds to market
Egypt’s market for securitized bond issuances continues to be red-hot, with three fresh issuances worth  more than EGP 2.8 bn closing in recent days. DATA POINT- The three transactions bring the total value of securitized bonds issued in Egypt so far this year to more than EGP 54.5 bn — more than 20% than was taken to market in FY 2022, according to data tracked by Enterprise. #1- EFG Corp-Solutions closed an EGP 1.01 bn securitized bond issuance last week, according to a statement (pdf) . The issuance is the third in the leasing and factoring firm’s ongoing securitization program, and includes three tranches with ratings of Prime1, A+, and A+ from the Middle East Ratings and Investor Service (MERIS). This is the company’s first issuance in 2023: The last time the EFG Holding subsidiary took to the debt markets was in September 2022 when it closed a EGP 2 bn issuance. Who subscribed? EFG Hermes and Arab African International Bank (AAIB) were underwriters. Arab Banking Corporation (ABC) and Al Ahli Bank of Kuwait also subscribed to the issuance. Advisors: EFG Hermes acted as the financial advisor and lead arranger on the transaction (as it has on some EGP 5.5 bn worth of issuances of late), AAIB as bookrunner and custodian, while KPMG acted as auditor. Dreny & Partners was the legal advisor. #2- Halan, the consumer finance subsidiary of MNT-Halan , has issued EGP 1.04 bn worth of securitized bonds, according to Al Borsa. The issuance featured four tranches rated P1 and A, and was reportedly 1.5x oversubscribed. Buyers included major banks and investment funds, according to the newspaper. Two down, one to go: This is the second issuance of a EGP 3 bn program, CIB’s debt capital market head Menan Awadallah told the newspaper. The company closed the first, EGP 978 mn issuance in December. More to come: MNT-Halan’s microfinance subsidiary, Tasaheel, has securitized bns of EGP of its portfolio over the past year as part of a EGP 13 bn program. The company has sold more than EGP 8.8 bn of securitized bonds since June 2022 across three issuances, and expects to issue the remainder before the end of 2023. Advisors: CIB acted as financial advisor, lead arranger and custodian, Matouk Bassiouny & Hennawy provided counsel, and KPMG was the auditor. #3- Rawasi turns to the securitization market: Real estate investor Raw asi Urban Develop ment has closed a EGP 789 mn securitized bond issuance, according to a statement (pdf) yesterday from Al Ahly Pharos, which led the transaction. The issuance is backed by a EGP 1.3 bn portfolio of leasing receivables, and was sold in three tranches rated P1, AA and A by Middle East Ratings and Investors Service (MERIS). Remember: Rawasi is a joint venture established in 2021 by the National Bank of Egypt (NBE) and Banque Misr to invest in real estate. The company has a partnership with Talaat Moustafa Group under which it buys out the developers assets. Who subscribed? The bond was fully covered by the NBE, Arab African International Bank (AAIB), Al Ahli Bank of Kuwait, Al Baraka Bank and MIDBank. Advisors: Al Ahly Pharos acted as financial advisor and lead arranger for the transaction. It was also one of the underwriters alongside NBE and AAIB. AAIB was custodian and placement agent. Dreny & Partners provided legal counsel, while RSM Egypt (Magdy Hashish) Egypt was the auditor.

Monday, 25 September 2023

DEBT WATCH | EnterpriseAM
MNT-Halan subsidiary Tasaheel + Talaat Moustafa Group close securitizations
The local securitization market continued its strong July this week, with Tasaheel and a subsidiary of Talaat Moustafa Group both closing issuances worth a combined EGP 3.75 bn. #1- MNT-Halan’s microfinance subsidiary Tasaheel has closed a EGP 3.34 bn securitized bond issuance, the company said (pdf) yesterday. The issuance was 1.8x oversubscribed and will provide Tasaheel with “the liquidity for the company’s planned growth and to reach new segments in the local market,” the statement said. Three tranches of the four-tranche issuance were rated P1 and one was rated A+ . More to come this year: The issuance is the third in a three year, EGP 13 bn program that Tasaheel kicked off in June 2022 with an EGP 2.6 bn issuance, followed by another EGP 2.7 bn issuance in January . The remaining EGP 4.3 bn is expected to be issued during 2023, the company said. Who bought in? Arab African International Bank, Bank ABC, Banque Misr, Midbank, Al Ahli Bank of Kuwait, SAIB Bank, CI Capital, and Arab African Investment Management. Advisors: CIB acted as the financial advisor, arranger, and custodian of the transaction. Matouk Bassiouny & Hennawy served as legal advisors and KPMG was the auditor. #2- TMG unit closes future flow issuance:Talaat Moustafa Group (TMG) subsidiary the Arab Company for Projects and Urban Development sold EGP 411 mn of bonds backed by securitized future cashflows, the transaction’s legal advisor Dreny & Partners said in a statement (pdf) on Sunday. A first and a second:This is the first issuance in Egypt to be backed by a portfolio of club membership fees, and the second to securitize future flows after CIRA debuted the securities last year. Advisors: EFG Hermes acted as the sole financial advisor, and underwrote the transaction along with the Arab African International Bank (AAIB). AAIB also acted as custodian and the subscription bank, while RSM Egypt (Magdy Hashish) was the auditor. Dreny & Partners provided counsel. DATA POINT- Companies have now issued more than EGP 45.3 bn of securitized bonds so far this year, according to data tracked by Enterprise. This is only EGP 80 mn shy of volu mes across the whole of 2022. ALSO IN DEBT- Banque Misr will provide a EGP 500 mn medium-term loan to the National Bank of Egypt’s microfinance arm Al Ahly Tamkeen for Microfinance, the state-owned lender said in a statement (pdf) yesterday. The money will be used to expand the firm’s loan portfolio, the banks said.

Tuesday, 1 August 2023

Snackmaker Edita plans to more than double capex in 2023
INVESTMENT- Edita to more than double capex this year: Edita plans to invest EGP 800 mn during this year, up from EGP 353.6 mn (pdf) in 2022, it said in an EGX disclosure (pdf) yesterday. This doesn’t include the EGP 400 mn it plans to inject into Fancy Foods, the frozen bakery company it recently acquired for EGP 380 mn.Raya Foods is considering a potential EGP 350 mn capital increase, a press release (pdf) said. “The offers, which have been made by both local and international investors, are being examined from our side in light of our long-term objectives and strategy,” Raya CEO Omar Abdelaziz told Enterprise. He said the company is considering hiring a consultant to close the transaction “when the final decision regarding the submitted proposals is made.”Ateco factory complete by end of 2024, says CEO: Ateco Pharma will finish the second phase of development of its medical solutions factory in Sokhna in 1Q 2024 and the third phase by the end of 2024, Al Mal reports, quoting CEO and Vice Chairman Waheed Ateeq. The two phases are expected to cost some EGP 500 mn in total, while the first phase — which was completed last year — cost more than EGP 1 bn. FINTECH-Banque Misr x Nexta: Banque Misr signed a cooperation protocol with fintech startup Nexta to launch an electronic payment app, the state-owned bank saidyesterday. Nexta will offer prepaid Visa cards issued by Banque Misr across the country along with the app. NBFS-CIB’s mortgage, factoring arm gets license: The Financial Regulatory Authority (FRA) has handed CIB subsidiary Commercial International Finance a license to offer mortgage financing and factoring products, the private-sector bank said in an EGX disclosure (pdf) yesterday. Established last year, the company is 99.8% owned by the CIB and is currently preparing to begin operations.Azimut, MNT-Halan launch AZ Halan fund: Fund manager Azimut and fintech firm MNT-Halan launched a fund dubbed AZ Halan (AKA Halan Tahweesh) on Sunday that offers savings products to their customers, Azimut Managing Director Ahmed Aboul Saad told Enterprise yesterday. Customers will receive an annual interest rate of around 16% on their savings with daily redemptions, Aboul Saad added. There is no minimum deposit requirement or administrative fee on opening an account.Contact x Vodafone: Contact Financial’s consumer finance arm Contact Creditech has signed an agreement to launch consumer financing products for Vodafone Egypt customers, including an instant credit limit approval system known as ‘Lending as a Service,’ a press release (pdf) read.

Tuesday, 20 June 2023

KUDOS | EnterpriseAM
Nine local firms make FT list of Africa’s fastest-growing companies
Nine Egyptian companies have been named on the Financial Times’ 2023 list of Africa's Fastest Growing Companies. Compiled by the newspaper in partnership with data provider Statista, the 100-strong list spotlights those African companies that it says saw the highest compound annual growth rate (CAGR) in revenues between 2018 and 2021, marking their “corporate dynamism” at the height of covid. Representing Egypt:#11- Globe Medex#19- KarmSolar#44- Suez Canal Bank#46- CIRA Education#62- Reefy#68- MNT-Halan#92- El Fayrouz Company For Converting And Cutting Paper#93- EFG Hermes Holding#97- Arab Contractors.Is that all, FT? The list is far from comprehensive, featuring only companies that either applied or were invited to participate by Statista, as was the case with the inaugural list released by the FT last year. Dominating the list are South Africa with 33 companies and Nigeria with 27 firms.At the Arab Federation of Capital Markets’ 2022 awards ceremony:Our friends at EFG Hermes were named best broker in Egypt and best broker in Dubai, according to a statement (pdf).The best investment bank award went to Al Ahly Pharos, it said on LinkedIn.Egyptian photojournalist wins Pulitzer: PhotojournalistNariman Ayman El Mofty was among a number of AP journalists who won the Breaking News Photography category in the 2023 Pulitzer Prizes for their coverage of the first weeks of the war on Ukraine. The album of winning images can be viewed here, though some are not for the faint of heart.

Thursday, 11 May 2023

STARTUP WATCH | EnterpriseAM
With equity fundraising flowing to a crawl, are more mature startups eyeing securitized bonds?
Securitization could become the next big thing in startup funding: Egypt’s startups and younger companies began shifting towards alternative investment vehicles last year, trumping the equity card with instruments like debt to avoid further share dilution. In the fintech space, we’ve heard of two young companies issuing securitized bonds in the past few months, suggesting that bond issuances could be gaining traction in StartupLand. Blnk and MNT-Halan are two startups that have recently turned to securitization: Lending platform Blnk raised a total of USD 32 mn in equity and debt capital in November, of which USD 8.3 mn were a securitized bond issuance underwritten by Banque du Caire and the National Bank of Egypt. Egyptian superapp MNT-Halan also took two bond issuances worth USD 140 mn to market through its subsidiaries Tasaheel Microfinance Company and Halan Consumer Finance early February. This was the company’s second issuance, with the first one completed in June last year for USD 150 mn. Both Blnk and MNT-Halan are lenders, which means they can securitize their loan books. As lenders, Blnk and MNT-Halan have a pool of receivables that they’re expecting to get in the short, medium, and long term. These receivables were restructured as a bond, and rated by local rating agency MERIS. After a due diligence process by an auditor and a law firm, this pool of underlying receivables can be sold to fixed-income investors, which are predominantly banks, ins. companies, and fund managers. But why opt for securitized bonds? #1- Fast growth means more cash burn: “You’re basically moving your loan book from your balance sheet to someone else’s balance sheet to raise money to keep growing,” MNT-Halan founder and CEO Mounir Nakhla told Enterprise. Companies opt for securitized bonds because they can offer more liquidity by offloading receivables. “We’re growing faster than our ability to secure debt from local commercial banks, and to compensate for that, as well as demonstrate our ability to de-bottleneck our balance sheet, we pursued the securitization at a very early stage,” Blnk co-founder and CEO Amr Sultan tells us. #2- And there’s no cap on the amount of money you can raise, as opposed to traditional debt. “Getting traditional forms of debt comes with a cap, but securitized bonds allow us to raise bigger amounts than traditional overdraft facilities,” Nakhla adds.#3- Moving away from foreign currency and share dilution: When it comes to equity funding — the usual suspect in the startup funding space — entrepreneurs get a bit wary due to two things. Firstly, every investor that comes on dilutes not only the founders’ shares, but also those of the company’s other investors. Secondly, “a lot of the equity funding is in USD and I definitely do not want any USD exposure to grow my loan book, but rather local currency exposure,” Nakhla explains.Caveat: The process is tedious and time-consuming: The founders used words like “complicated,” “tedious,” and “thorough” to describe the securitization process. “The first securitization was very complex and took at least six months to go through,” Nakhla says. This goes back to the meticulous due diligence process taking place between auditors, lawyers and government bodies. “The subsequent ones were more straightforward. There is a learning curve,” he adds.But that’s also not necessarily a bad thing: The complex process makes it a safer option for investors. “Given the level of scrutiny we are subjected to in the securitization process, it gives fixed income investors a level of comfort in the soundness of the company and its business,” Sultan explains. Banks — a few of which might be averse to lending a young company — as well as other fixed income investors, are more likely to invest in a highly rated securitized bond, which is why this type of funding opens up the possibility of having multiple sources of funding that can grow concurrently, he adds.

Sunday, 19 March 2023

Another quiet morning in the international press
It’s another quiet morning for Egypt in the pages of the foreign press: Quartz has pronounced Egypt a regional tech hub following MNT-Halan’s newfound unicorn status and Reuters profiles nationally-ranked bodybuilder, Ali El Sharkawy, who spends his mornings collecting trash to fund his career as a professional athlete. Foreign Policy has an op-ed calling for the military to reduce its involvement in the economy. And the US is reportedly pushing Egypt and the UAE to pressure leaders in Sudan and Libya to cut ties with Russia’s Wagner Group, the private military outfit closely associated with the Kremlin, the Associated Press reports.

Wednesday, 8 February 2023

M&A WATCH | EnterpriseAM
MNT-Halan on its way to unicorn status with major Chimera investment
Our friends at Abu Dhabi-based Chimera Investments will acquire 20% of Egyptian super app MNT-Halan after investing USD 200 mn in the firm, according to a statement (pdf) out yesterday. The company is also in talks with international investors to raise another USD 60 mn in primary capital, MNT-Halan said. Unicorn status: The new investments put the company on track for a valuation of more than USD 1 bn. Reuters also had the story. We know one of the investors in talks: The International Finance Corporation (IFC) is intending to invest USD 40 mn in the company, pending approval, according to the lender’s website. The IFC is expected to make a final decision on the investment on 9 April. If that’s not enough: MNT-Halan also announced completion of two securitizations totaling USD 140 mn through its subsidiaries Tasaheel Microfinance Company (Tasaheel) and Halan Consumer Finance (Halan), with the CIB. Tasaheel closed a USD 100 mn issuance backed by its loan book on Tuesday, an MNT-Halan representative told Enterprise — following its USD 150 mn issuance in June last year. Halan raised USD 40 mn by securitizing its loan book several weeks ago, marking its first securitization, the representative added. More to come: At this point, MNT-Halan has the capacity to further securitize up to USD 250 mn, the company said — less than the original USD 600 mn securitization program it announced in June. The re-cast is due to fluctuations in the EGP exchange rate, a company representative told Enterprise. Advisors: White & Case, Shearman and Sterling, Lexence, and Matouk Bassiouny & Hennawy all served as legal advisors on the investments. Arqaam Capital served as advisors to GB Auto on the transaction. CIB served as the sole financial advisor, general arranger, underwriter and custodian of the securitizations with National Bank of Egypt serving as underwriter. Matouk Bassiouny & Hennawy served as legal advisors for the securitization. Eterna Partners served as communications advisors. Global and regional investors have been keen on MNT-Halan for a while: The company raised USD 120 mn in 2021 from international investors. Development Partners International, Apis, and Lorax Capital Partners all participated in the round. REFRESHER– MNT-Halan came into existence in 2021, after Netherlands-based payments company MNT, the parent company of asset-based lender Mashroey and microfinance player Tasaheel, entered into a share swap agreement with Egyptian fintech / delivery / ride-hailing company Halan to create super-app MNT-Halan. EDITOR'S NOTE- This story was updated on 2 February, 2023 to correct advisor roles.

Thursday, 2 February 2023