Egypt fintech firm MNT-Halan securing $ 400 million in new finance

CAIRO, Feb 1 (Reuters) – Egyptian microfinance lending and payments company MNT-Halan is securing $ 400 million in new equity and finance, bringing its valuation to more than $ 1 billion, the company said in a statement on Wednesday.

The investments include an equity stake of at least 20% of MNT-Halan worth more than $ 200 million taken by private equity firm Chimera Abu Dhabi. Another $ 60 million in primary capital is being secured from international investors, the statement said.

These investors include the International Finance Corporation (IFC), according to data on the IFC’s website.

MNT-Halan obtained $ 140 million in financing by securitising part of its loan book, the statement said.

MNT-Halan provides small- and micro-business lending, payments, consumer finance and e-commerce, the company said. It has more than 5 million customers in Egypt, of which 3.5 million are financial clients and 2 million are borrowers. About 1.3 million of the customers are active monthly.

New legislation and regulatory changes in Egypt, the Arab world’s most populous country, have been helping attract a surge in new fintech investments and change the way the country’s largely unbanked citizens do business.

“Following the completion of these investments, MNT-Halan’s valuation will exceed $ 1 billion,” the statement added.

Previous investors in MNT-Halan include Cairo-based Lorax Capital Partners, and Middle Eastern venture capitalists Algebra Ventures, DisrupTech, Endeavor Catalyst, Egypt Ventures, MEVP and Wamda.

Reporting by Patrick Werr. Editing by Gerry Doyle

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