EFG Hermes’ valU issues EGP 854.5m worth of securitized bonds

EFG Hermes’ valU issues EGP 854.5m worth of securitized bonds

EFG Hermes’ valU, the Buy-Now, Pay-Later (BNPL) lifestyle-enabling FinTech platform, is issuing its third securitized bond issuance worth EGP 854.5 million, which comes as part of a wider 2.0 billion EGP program that was approved by the FRA earlier this year. 

The bond is backed by a receivables portfolio, assigned to EFG Hermes Holding’s Financial Group for Securitization, the issuance’s Special Purpose Vehicle (SPV). It is comprised of a single tranche, with a Prime 1 rating and a tenor of 12 months. 

“We are pleased to be part of yet another successful issuance for valU and to support the leading BNPL fintech player in expanding its operations and broadening its capacities in the ever-growing Egyptian FinTech ecosystem. The significant traction garnered from all three issuances, which initially hit the market as the first-of-their-kind for a BNPL fintech platform, underlines the trust we have built in the market and our unwavering commitment to provide our partners and clients with value-generating and diverse financing solutions that best serve their business expansion objectives,” Maie Hamdy, Managing Director of Debt Capital Markets at EFG Hermes, said.

The transaction comes in line with the BNPL’s strategy to expand its operations in the regional FinTech landscape. valU also recently acquired a minority stake in Egypt’s FinTech startup, Kiwe, a youth social payment app that facilitates onboarding the unbanked youth segment in Egypt.

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