– Valu successfully closed a $13.22 million securitized bond issuance, part of its EGP 9 billion securitization program.

– The bond includes two tranches: EGP 370.05 million for 6 months at a Prime 1 (sf) rating, and EGP 246.7 million for 12 months at a Prime 2 (sf) rating, both with fixed interest rates.

– EFG Hermes acted as the sole financial advisor, transaction manager, bookrunner, underwriter, and arranger, with AAIB as underwriter and custodian bank.

Valu, a financial technology company in the Middle East and North Africa, announced the closing of its ninth securitized bond issuance, valued at EGP 616.75 ($13.22) million. This issuance is part of an approved EGP 9 billion securitization program.

The bond, consisting of two tranches, is backed by a receivables portfolio assigned to EFG for Securitization, the issuance’s special purpose vehicle (SPV): Tranche A:EGP 370.05 million, 6-month tenor, Prime 1 (sf) rating, fixed interest rate ; Tranche B: EGP 246.7 million, 12-month tenor, Prime 2 (sf) rating, fixed interest rate.

“We are thrilled to announce the successful completion of our ninth securitized bond offering in partnership with EFG Hermes,” said Shokry Bidair, CFO of Valu. “This latest milestone in our journey is a testament to our unwavering commitment towards driving sustainable financial growth and catering to the evolving needs of our clients.”

Bidair added that the issuance strengthens Valu’s financial position and opens up new opportunities in the Egyptian debt capital market.

Maie Hamdy, Managing Director of Debt Capital Markets at EFG Hermes, commented, “Our team at EFG Hermes is delighted to have contributed to Valu’s ongoing success. This recent deal highlights our commitment to delivering innovative financial solutions and the exceptional synergies within our firm.”

EFG Hermes served as the sole financial advisor, transaction manager, bookrunner, underwriter, and arranger. Arab African International Bank (AAIB) also acted as underwriter and custodian bank. Subscribers to the issuance included Arab Banking Corporation (ABC) and Al Ahli Bank of Kuwait (ABK). Dreny & Partners provided legal counsel, and Baker Tilly served as the transaction auditor.

Valu is known for its innovative financial products, including the BNPL platform ‘U’, investment products like the AZ Valu fund and EFG Hermes ONE, and various other solutions such as Sha2labaz, Akeed, and Ulter. The company recently partnered with Visa to launch co-branded credit and prepaid cards.