Tasaheel Holding Company, a subsidiary of the Egyptian fintech giant MNT-Halan, has successfully issued EGP 2.5 billion (roughly $49.4 million) in corporate bonds, allowing the company to access the public debt markets. This is the largest corporate bond issuance in the Egyptian market to date.
The action reflects a growing trend among African credit-focused startups to seek alternative financing sources outside of traditional venture capital. To support their growth and attain sustainability, these startups are increasingly turning to local public debt markets and possible initial public offerings (IPOs).
Offered corporate bonds
Two tranches of Tasaheel’s corporate bonds were offered: an EGP 2 billion tranche with a 12-month tenor and an EGP 500 million tranche with a 36-month tenor. Tasaheel was rated BBB+ by the Middle East Rating and Investor Service (MERIS). KPMG Hazem Hassan served as the offering’s financial auditor, Matouk Bassiouny & Hanawi as its legal advisor, and CI Capital served as its lead manager and coordinator.
MNT-Halan’s founder and CEO, Mounir Nakhleh, noted that the issuance is a calculated move to diversify the company’s sources of funding to support its upcoming expansion phase.
“This is an important step forward for us at MNT-Halan, as it reflects the ambitions of our management team, the strength of our financial and operational performance, the market’s confidence in our brands, as well as the diversity of new funding channels that support the next phase of the company’s growth, and we are proud to be able to successfully implement it,” Nakleh stated.
Islam Ayoub, Managing Director of Tasaheel, added: “This issuance reinforces our ability to meet the growing demand for our products and supports us in increasing the volume and efficiency of our lending operations, as well as reflects the market’s confidence in our business model and our commitment to expand to serve more microfinance and SME customers across Egypt.”
About public debt markets
Public debt markets are becoming a more alluring option for credit-focused fintechs, whose lending portfolios demand significant capital. Companies can finance their loan books without equity to new investors by issuing instruments such as corporate bonds and commercial paper, which give them access to non-dilutive capital.
This strategy aligns with a growing emphasis on profitability and sustainable growth, rather than relying solely on valuation metrics that often influenced earlier-stage VC funding rounds.
About MNT-Halan
MNT-Halan was established in Egypt in 2018 with the intention of using technology to transform the accessibility of financial services.
Through the Hala app and a significant local presence, MNT-Halan offers e-wallet, prepaid card, investment, and e-commerce services in addition to financing for MSMEs.
More than 8 million clients worldwide have benefitted from MNT-Halan’s financing since its founding, which has helped to advance projects and raise people’s standards of living.
In addition to the first independent electronic wallet licence from the Central Bank of Egypt to distribute, collect, and transfer funds digitally through mobile applications and a prepaid card licence, MNT-Halan Group of Companies also possesses micro, nano, SME, and consumer finance licences, as well as a licence from the Egyptian Financial Supervisory Authority to receive purchases and redemption of investment fund documents. It also acquired a licence to operate a microfinance bank in Pakistan.
It has also won numerous awards, such as Global Finance Magazine’s Most Innovative FinTech Company in the Middle East and Africa title and two years in a row of being listed among the fastest-growing African companies by Financial Times.
It was also ranked by Forbes Middle East in the top 50 financial technology companies. Additionally, MFR awarded one of its Egyptian subsidiaries the bronze “Responsible Finance” certification (under the Cerise + SPTF framework).