Tasaheel, a prominent Egyptian lender serving small businesses and entrepreneurs, has concluded the largest corporate bond issuance in Egypt's history. The bond, valued at EGP 2.5 billion, was structured in two separate tranches, signaling a new era of corporate financing for the company. With an investment-grade rating of BBB+ from Middle East Ratings and Investor Services (MERIS), this issuance highlights Tasaheel’s robust financial standing and its strategic growth trajectory.
Strategic Importance of the Bond Issuance
The issuance is pivotal for Tasaheel, as it opens a crucial funding avenue to further its mission of supporting small and medium-sized enterprises (SMEs) in Egypt. The two tranches of the bond include EGP 2 billion with a 12-month tenor and EGP 500 million with a 36-month tenor. This dual structure was designed to cater to both short-term and long-term funding needs, reflecting the company's commitment to sustainable growth and operational efficiency.
MNT-Halan CEO Reflects on Milestone Achievement
Mounir Nakhla, Founder and CEO of MNT-Halan, Tasaheel’s parent company, emphasized the importance of this bond issuance for the company’s future. He noted that this achievement not only marks a significant milestone for MNT-Halan but also demonstrates the company’s financial strength and the strategic ambition of its management team. Nakhla further expressed pride in the complexity of the process and the successful execution of the bond, which he views as a key step in fueling the next phase of growth.
Tasaheel’s Managing Director Highlights Business Growth
Islam Ayyoub, Managing Director of Tasaheel, shared his insights on how this bond issuance would help meet the growing demand for business loans in Egypt. He underlined that the funds raised through the bond would enhance the company's capacity to scale its lending operations and expand its customer base. Ayyoub also reinforced the significance of this achievement in showcasing the confidence in Tasaheel’s business model, which is built around serving Egypt’s small and medium-sized businesses.
Collaborative Effort in Bond Issuance Process
The successful execution of the bond issuance involved collaboration with leading financial and legal experts. CI Capital acted as the issuance manager and bookrunner for the deal, ensuring that all processes adhered to the highest standards of financial practice. KPMG – Hazem Hassan served as the financial auditor, while Matouk Bassiouny & Hennawy provided legal guidance throughout the transaction, ensuring its smooth progression and compliance with regulatory requirements.
MNT-Halan’s Vision and Achievements in Financial Services
Founded in 2018, MNT-Halan has quickly emerged as a key player in Egypt and the MENA region’s fintech landscape. The company provides a range of financial services, including business and consumer loans, prepaid cards, e-wallets, savings products, and e-commerce solutions through its Halan app. With over 8 million customers served globally, MNT-Halan has earned several accolades, including recognition as the Most Innovative Fintech Company in the Middle East and Africa by Global Finance Magazine.
MNT-Halan’s Commitment to Innovation and Financial Inclusion
MNT-Halan has built a reputation for its commitment to financial inclusion and innovation, holding multiple licenses from the Egyptian Financial Regulatory Authority and the Central Bank of Egypt. It is recognized for its efforts in revolutionizing financial access for underserved populations, particularly small businesses. The company’s continuous efforts have earned it a spot on the Financial Times’ list of Africa’s Fastest Growing Companies for three consecutive years, solidifying its position as a fintech leader in the region.
Tasaheel’s successful bond issuance is a testament to the company’s growing influence in Egypt’s financial sector. This landmark transaction not only strengthens Tasaheel’s ability to meet the demands of SMEs but also highlights its potential to become a pivotal player in Egypt’s financial ecosystem. As Tasaheel continues to expand its services, it remains well-positioned to support the growth of small businesses and contribute to the broader economic development of Egypt.