Valu Closes its 10th Securitized Bond Issuance Worth EGP 1.2 Billion

The issuance brings Valu’s total securitizations within its EGP 9.0 billion securitization program to 10, following the latest EGP 616.8 mn securitization in May.

Valu, MENA’s leading universal financial technology powerhouse, announced today that it has closed its 10th securitized bond issuance worth EGP 1.2 billion. The issuance is part of the approved extended securitization program worth EGP 9.0 billion.

The bond is backed by a receivables portfolio assigned to EFG for Securitization, the issuance’s special purpose vehicle (SPV), and is comprised of two tranches:

• Tranche A – Valued at EGP 691.6 million, with a 6-month bond tenor, a Prime 1 (sf) rating, and a fixed interest rate.
• Tranche B – Valued at EGP 461.0 million, with a 12-month bond tenor, a Prime 2 (sf) rating, and a fixed interest rate.

Shokry Bidair, CFO of Valu, said, “This milestone marks a significant step in our growth journey, showcasing our ability to leverage a variety of financial instruments to fuel our expansion. The success of this issuance reflects the market’s confidence in Valu’s robust business model and our commitment to maintaining high standards of transparency and financial integrity. We remain dedicated to offering innovative financial solutions that meet the evolving needs of our customers, and this latest securitization will enable us to further diversify our product offerings and enhance our service delivery.”

Valu is revolutionizing the financial landscape in Egypt with its cutting-edge offerings that cater to the needs of millions of consumers. The company’s flagship BNPL platform ‘U’ and along with a diverse basket of investment products, such as the AZ Valu fund and EFG Hermes ONE, are empowering customers to achieve their financial goals with ease. Valu continues to innovate with the introduction of new solutions that meet its customers’ evolving needs. From the instant cash redemption program Sha2labaz to the convenient savings solution Akeed and the luxury financing program Ulter, Valu is committed to providing comprehensive financial services tailored to enhance the customer experience. Valu recently launched a co-branded credit card and prepaid card in partnership with Visa as a means of expanding its range of offerings to provide greater financial flexibility and convenience for its customers.

Maie Hamdy, Managing Director – Debt Capital Markets at EFG Hermes, commented on the transaction, saying, “The successful conclusion of this 10th issuance for Valu is a testament to the strength of the partnership between EFG Hermes and Valu. It highlights Valu’s innovative approach and sound financial management which have enabled the company to access the capital markets and raise funds to support its growth. At EFG Hermes, we are proud to support initiatives that drive economic growth and provide our partners with attractive opportunities. We look forward to continuing our collaboration with Valu on its expansion journey to bring more value-driven financial solutions to the market. Together, we are well-positioned to capitalize on the evolving financial landscape and deliver sustainable value to all our stakeholders.”

EFG Hermes was the sole financial advisor, transaction manager, bookrunner, underwriter, and arranger on the issuance. Arab African International Bank (AAIB) acted as the issuance’s underwriter and custodian bank. Arab Banking Cooperation (ABC) was one of the subscribers to the issuance. Dreny & Partners acted as the legal advisor and Baker Tilly acted as the transaction’s auditor.