Souhoola, Banque Misr’s consumer finance subsidiary, plans to sell around USD 5.8 million (EGP 300M) in financing portfolios during the fourth quarter of 2026. This comes as it continues to monetize part of its consumer finance book.

Why You Should Care

The planned transaction gives a further look at Souhoola’s approach to managing its financing portfolio and monetizing receivables. The company is combining portfolio sales with securitization as part of its around USD 29 million (EGP 1.5B) program, with further activity expected before the end of 2026.

Portfolio sales allow the company to turn existing financing receivables into cash, while its use of securitization shows another route for unlocking funding from its portfolio. Together, the transactions provide a window into how Souhoola is managing its financing base and funding strategy.

The Details

In an interview with Zawya Arabic, CEO of Souhoola Ahmed Alshanawany responded to a question regarding the possibility of selling portfolios or issuing securitization bonds. In response, he said the plans would be simple, for instance, around EGP 300 million in portfolio sales.

Souhoola previously sold more than USD 11.6 million (EGP 600M) as part of its broader USD 29 million (EGP 1.5B) monetization program. It also issued EGP 883 million in securitization bonds, covering much of the remaining amount under the program.

The CEO also indicated that Souhoola is currently negotiating with banks to purchase the portfolios. He did not identify the banks involved and expects the transaction to close during the fourth quarter of 2026.

Established in 2019, Souhoola is a BNPL and consumer finance platform. It was later acquired by Banque Misr in 2022, with the bank currently owning 99.7% of the company. It provides consumer finance services for purchasing, including household goods, cars, education, healthcare, travel, and tourism.

The Ripple

The transactions highlight the range of funding channels available to consumer finance companies in Egypt. Portfolio sales allow lenders to transfer existing financing receivables to banks, while securitization provides another route for raising funds against underlying portfolios.

For Banque Misr, Souhoola’s continued portfolio activity also reflects the expansion of its consumer finance business since the bank acquired control of the company.

What to Watch

The next milestone is whether Souhoola completes the planned EGP 300 million sale during Q4 and which banks ultimately acquire the portfolios. The transaction will also show how the company balances portfolio sales with securitization as it manages its financing book into 2027.