MEMPHIS REISEN

Valu completes eighth securitization with EGP 888m bond offering – Dailynewsegypt

Valu, a leading force in MENA’s financial technology sector, has completed its eighth securitized bond issuance, valued at EGP 888m. This issuance contributes to the company’s extensive programme, which is authorized up to EGP 9bn.

The bond, supported by a receivables portfolio managed by EFG for Securitization (the special purpose vehicle for the issuance), consists of two segments:

• Tranche A: Worth EGP 639.4m, featuring a six-month tenor, a Prime 1 (sf) rating, and a fixed interest rate.
• Tranche B: Valued at EGP 248.6m, with a twelve-month tenor, a Prime 2 (sf) rating, and a fixed interest rate.

Shokry Bidair, CFO of Valu, expressed enthusiasm about the new bond offering, marking a significant achievement in Valu’s strategic development. “This eighth securitization, realized through our collaboration with EFG Hermes, propels us toward sustained growth and diversification of our financial services. It’s a testament to our past achievements and paves the way for innovative approaches to the debt capital market, aligning with our ambitious growth plans. This move fortifies our financial foundation, reinforcing Valu’s position as a top-tier fintech entity, committed to delivering bespoke financial solutions that evolve with our customer’s needs.”

Valu is transforming Egypt’s financial scene, touching millions of lives with its advanced services. The company’s premier BNPL platform ‘U’, along with a suite of investment products like the AZ Valu fund and EFG Hermes ONE, empowers clients to realize their financial aspirations effortlessly. Valu consistently introduces groundbreaking solutions, such as the instant cash redemption program Sha2labaz, the convenient savings option Akeed, and the luxury financing initiative Ulter. Valu’s recent launch of a co-branded credit and prepaid card, in collaboration with Visa, broadens its spectrum of services, enhancing financial flexibility and convenience for its clientele.

Maie Hamdy, Managing Director of Debt Capital Markets at EFG Hermes, reflected on the deal: “It’s a privilege to contribute to Valu’s ongoing narrative of success. This transaction highlights our commitment to innovative finance and the synergy between EFG Holding’s teams. We’re excited to support Valu’s impressive growth and look forward to the vast prospects our partnership holds.”

EFG Hermes functioned as the exclusive financial advisor and transaction manager for the issuance. Alongside EFG Hermes, Arab African International Bank (AAIB) served as an underwriter and custodian bank. Subscribers to the issuance included Arab Banking Corporation (ABC) and Al Ahli Bank of Kuwait (ABK). Legal counsel was provided by Dreny & Partners, while Baker Tilly undertook the role of auditor for the transaction.