MNT-Halan Closes EGP 4.0085bn Securitisation for Two Lending Arms
Tasaheel accounts for two of the three issuances and Halan Consumer Finance the third; each carries an A- rating from MERIS.
Nadia Mansour Nadia Mansour covers fintech across the UAE and MENA for Anecdoted -- digital banking, payments licences and the startups building around them. nadia@anecdoted.com
MNT-Halan has completed three securitisation issuances carrying a combined value of EGP 4.0085bn, a sum equivalent to roughly $76.5m. The Egypt-based fintech made the deals for two of its lending subsidiaries, Tasaheel for Finance and Halan Consumer Finance. The company said the transactions will diversify its funding and support the expansion of its financing activities in Egypt.
Tasaheel took two of the three. One was valued at EGP 1.2bn, the other at EGP 2.28bn; in dollar terms those figures come to about $22.9m and $43.5m. Halan Consumer Finance received the remaining issuance, sized at EGP 528.5m, or close to $10.1m. Add the three together and they reconcile with the stated total.
The deals share a common design. Each was issued as a single tranche, each runs 13 months, and each drew the same A- grade from Middle East Rating & Investors Service, or MERIS. A single-tranche structure means the notes were not carved into senior and subordinated slices, so investors in a given issuance hold the same claim on the cash flows behind it.
Advisory work was spread across four firms. CI Capital and Al Ahly Pharos handled investment banking on the three transactions. Matouk Bassiouny & Hennawy provided legal counsel. Baker Tilly served as auditor, and Capital for Securitization acted as the securitisation company.
Securitisation turns a loan portfolio into tradable securities. Receivables are pooled and transferred to a separate vehicle, which funds the purchase by selling notes to investors and services those notes out of the borrowers' repayments. The originator gets its cash sooner than the loan schedule would have delivered it, freeing money for new lending. The securitisation company sits at the centre of that flow, holding the assets and passing the collections on.
For a lender, that route is an alternative to borrowing against its own balance sheet or issuing equity. Tasaheel's pair accounts for EGP 3.48bn of the programme, while the Halan Consumer Finance deal makes up the rest, so the group spread its funding across two loan books instead of concentrating it in a single pool.
Each issuance was sized separately rather than as part of one larger bond. All three notes mature within roughly a year of issue, and all three were rated at the same level, which leaves size and the borrowing entity as the differences between them.
