Valu Closes its 11th Securitized Bond Issuance Worth EGP 1,091.9 Million

The issuance is the first under the newly approved EGP 16.0 billion securitization program and comes after the most recent EGP 1.2 bn securitization, which closed in June.

Valu, MENA’s leading universal financial technology powerhouse, announced today that it has finalized its 11th securitized bond issuance worth EGP 1,091.9 million. The issuance is the first under the newly approved securitization program worth a total of EGP 16 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 676.98 million, with a 6-month bond tenor, a Prime 1 (sf) rating, and a fixed interest rate.
• Tranche B – Valued at EGP 414.92 million, with a 12-month bond tenor, a Prime 2 (sf) rating, and a fixed interest rate.

Shokry Bidair, CFO of Valu, commented, “Finalizing this bond marks a pivotal moment for Valu as we embark on the first issuance under our newly approved EGP 16 billion securitization program. This achievement strengthens our financial standing while reaffirming our commitment to delivering innovative and accessible financial solutions across the region. We aim to reinforce our ability to meet the evolving needs of our clients while further solidifying Valu’s position as the leading fintech powerhouse in the region.”

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’, 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 by introducing 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, added, “The successful finalization of Valu’s 11th securitized bond issuance under the newly approved program is a testament to the continued strength of the partnership between EFG Hermes and Valu. Our shared commitment to innovation and financial inclusion is unwavering. EFG Hermes is proud to support initiatives that fuel economic growth and create impactful opportunities. We remain dedicated to working alongside Valu as it continues to lead and expand the fintech landscape.

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) and others were the subscribers to the issuance. Dreny & Partners was the legal advisor, and Baker Tilly was the auditor.