Tasaheel has securitised $150million of its loan book in the first issuance of a $600million programme with Commercial International Bank (CIB), the Egyptian private sector bank, to fuel the IT Infrastructure and security solution company’s growth across multiple lending business lines.
Tasaheel is the wholly-owned subsidiary of the Egyptian fintech MNT-Halan, itself being identified as the country’s largest non-bank lender, with a digital ecosystem of small business and consumer lending, payments and e-commerce.
Twice oversubscribed, the securitisation offering consisted of 137,000 contracts and cash pay-back ability. Participating regional and local financial institutions included Abu Dhabi Commercial Bank, Al Ahli Bank of Kuwait, Al Baraka Bank, Agricultural Bank of Egypt and the Housing and Development Bank.
The issuance, divided into four tranches, has been rated prime one for the first three and A for the fourth by the Middle East Rating and Investor Service (MERIS).
CIB served as financial advisor and general arranger of the transaction, with the National Bank of Egypt serving as co-financial advisor and underwriter. Arab Africa International Bank and NI Capital served as underwriters, while Maatouk, Bassiouny and Hennawy served as legal advisors.
Commenting on the issuance, MNT-Halan CEO Mounir Nakhla describes the role of CIB as “instrumental,” adding that the transaction “marks our first securitisation and ensures our continued growth as we expect our loan book to exceed $2billion over the next couple of years,” as the company prepares to explore new verticals.
Mennan Awadallah, head of debt capital markets at CIB, adds that the transaction “underscores our commitment to promoting sustainable long-term growth for the bank, our customers, and all our stakeholders and demonstrates our support for our customers throughout their journeys.”
“We work to tie our own financial success to the economic advancement of communities throughout Egypt with the ultimate goal of driving financial inclusion,” continues Awadallah. “We’re delighted to continue supporting a business that has solid economics and serves the needs of the unbanked.”