Egyptian fintech giant MNT-Halan is tapping into public debt markets, with its subsidiary Tasaheel Holding Company successfully issuing EGP 2.5 billion (approximately $49.4 million) in corporate bonds. The move highlights a growing trend among African credit-focused startups to seek alternative financing beyond traditional venture capital, increasingly looking towards local public debt markets and potential initial public offerings (IPOs) to fuel their growth and achieve sustainability.
The corporate bonds issued by Tasaheel, which received a BBB+ credit rating from the Middle East Rating and Investor Service (MERIS), were offered in two tranches: a EGP 2 billion tranche with a 12-month tenor and a EGP 500 million tranche with a 36-month tenor. CI Capital acted as the lead manager and coordinator for the offering, with KPMG Hazem Hassan as financial auditor and Matouk Bassiouny & Hanawi as legal advisor.
Mounir Nakhleh, Founder and CEO of MNT-Halan, stated that the issuance is a strategic step to diversify the company’s funding channels, supporting its next phase of expansion.
Credit-focused fintechs, whose business models require substantial capital for their lending portfolios, are finding public debt markets increasingly attractive. Issuing instruments like corporate bonds and commercial paper provides access to non-dilutive capital, allowing companies to finance their loan books without equity to new investors. This approach aligns with a growing focus on profitability and sustainable growth, rather than solely on valuation metrics that often drove earlier-stage VC funding rounds.
Egypt’s fintech landscape, in particular, is seeing this trend take root. Valu, a consumer finance platform known for its “Buy Now, Pay Later” service, has been an active participant in the capital markets. The company recently completed its 14th securitised bond issuance, valued at EGP 463.3 million, as part of a larger EGP 16 billion program. This follows their 13th issuance of EGP 519.2 million (approximately $10 million) in late 2023. Valu’s consistent use of securitisation underscores the viability of packaging and selling future receivables to raise immediate capital.
Adding another layer to Egypt’s maturing fintech market, Valu’s parent company, EFG Hermes Holding, has approved plans to list the fintech unit on the Egyptian Exchange (EGX). This move, which includes distributing Valu shares to EFG Hermes shareholders, positions Valu to become one of the first Egyptian fintechs to transition to public trading, signaling a new level of institutional maturity and a pathway for investor exits.
Further south, Nigerian digital bank FairMoney has also demonstrated a pivot towards debt financing. Since its Series B equity round in 2021, the company has increasingly relied on commercial paper issuances to fund its operations. In April 2025, FairMoney raised ₦5.3 billion (approximately $3.5 million) through an oversubscribed commercial paper program, following previous successful issuances. The company’s managing director in Nigeria, Henry Obiekea, highlighted that the strong uptake reflects investor confidence in FairMoney’s improved financial performance, which saw significant revenue growth and tripled profitability in FY 2024. This reliance on commercial paper showcases a deliberate strategy to leverage local debt markets for scalable and less dilutive funding.
Another Nigerian player, CapitalSage Technology Limited, parent company of Kolomoni Microfinance Bank, has also successfully tapped public debt, recently repaying its fourth commercial paper of ₦2.5 billion ($1.5 million). This demonstrates a commitment to financial prudence and the potential for public debt to support inclusive financial solutions.
However, this shift towards public debt and IPOs is occurring within evolving regulatory frameworks. Both Egyptian and Nigerian authorities have introduced stricter regulations governing debt issuance by non-bank financial institutions. In Egypt, the Financial Regulatory Authority (FRA) introduced Circular No. (7) of 2024, imposing tighter controls on securitisation, requiring greater transparency and stricter conditions on securitised assets. Similarly, Nigeria’s Securities and Exchange Commission (SEC) has tightened rules for commercial paper issuance, mandating higher shareholder equity, investment-grade credit ratings, and the backing of commercial banks as issuing agents. These regulations, partly driven by concerns over market stability and investor protection, could present challenges but also push fintechs towards stronger governance and financial health.
Despite the increased regulatory scrutiny, the trend indicates a significant evolution in the African fintech funding landscape. Public debt markets offer a more sustainable and less dilutive path to capital for companies with proven business models and a focus on profitability. As more African fintechs demonstrate financial discipline and navigate the regulatory environment, their increasing engagement with public markets is set to redefine how these companies are funded and valued, moving towards institutional credibility and long-term sustainability.