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Thursday, 2 February 2023

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.

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