MNT-Halan’s recent acquisition of Turkey’s largest nonbank micro-leasing company will boost its factoring business in Egypt and expand consumer credit in Turkey, said CEO Mounir Nakhla.
The purchase was enabled by Egypt’s $35 billion sale of the Ras El-Hekma development, stabilizing government finances.
Following the sale, Egypt signed an $8 billion financial support package with the IMF, allowing its currency to move according to market forces.
The Turkish acquisition, Tam Finans, operates through 39 branches and holds over 40% of the Turkish micro-leasing market, Nakhla told Reuters.
MNT-Halan used most of the $157.5 million it secured the previous week to complete the purchase, also turning over 5-10% of its shares to Actera, the Turkish private equity group that owned most of Tam Finans.
Nakhla highlighted Tam Finans’ deep experience in factoring, which MNT-Halan plans to leverage in Egypt.
Tam Finans, with a $300 million loan book, focuses on lending to small businesses, while MNT-Halan, with a $600 million loan book, provides credit to mostly unbanked consumers.
MNT-Halan aims to introduce its popular electronic wallets from Egypt into the Turkish market.
MNT-Halan has also acquired a bank in Pakistan and is issuing loans in the UAE, with plans to enter the Saudi Arabian and South African markets.
