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Valu Closes Sixth Issuance in a Securitized Bond Offering

Staff writer
Sept. 17, 2023, 1:30 p.m.

Word count: 458

Valu, MENA’s universal financial technology powerhouse, has closed its sixth securitized bond issuance. 

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Valu, MENA’s universal financial technology powerhouse, has closed its sixth securitized bond issuance. 

The EGP 922.3m issuance is part of a short-term program that has been renewed and is backed by a receivables portfolio assigned to EFG Hermes’ Financial Group for Securitization, the issuance’s Special Purpose Vehicle (SPV). 

The securitization is comprised of a singular trance with a 12-month bond tenor valued at EGP 922.3 million and a Prime 1 (sf) rating.

Shokry Bidair, CFO of Valu, said: "With the successful closure of our sixth securitization in partnership with EFG Hermes, we are delighted to continue executing our strategic vision. This transaction is a pivotal step forward in our journey towards sustainable growth and enhancing our ability to provide our customers with an even broader array of innovative financial solutions. By bolstering our liquidity position, this move aligns perfectly with our aspirations to further solidify Valu's position as a comprehensive lifestyle enabler, offering end-to-end fintech solutions that cater to the evolving financial needs of our clients. We remain confident in our ability to achieve both growth and profitability while seizing new opportunities in the market.”

Valu remains dedicated to its mission of making finance more accessible and inclusive, and this successful securitization marks another step toward achieving that goal. 

This transaction marks Valu’s third issuance this year, and the sixth concluded in partnership with EFG Hermes to date.

Over the years, Valu has consistently pushed the boundaries of the market by introducing innovative and deeply integrated financial solutions. Today, Valu is a household name in Egypt, having successfully evolved from a Buy-Now-Pay-Later (BNPL) platform into a universal financial technology powerhouse. It plays a pivotal role in fostering financial empowerment and inclusivity within the market, extending its services to include investment products, an instant cash redemption program, and savings solutions through five unique verticals: U, Business, Akeed, Flip, and Invest.

Maie Hamdy, Managing Director - Debt Capital Markets at EFG Hermes, said: “We are proud to continue playing our role in Valu's continued growth, this latest offering in our series of securitization issuances has been covered successfully over one and a half times. This securitization transaction not only underscores our commitment to delivering innovative financial solutions but also highlights the robust collaboration between our teams. We are excited to continue supporting Valu's growth journey and look forward to exploring new opportunities together.”

EFG Hermes acted as the sole financial advisor, sole transaction manager, and book-runner. 

EFG Hermes and the Arab African International Bank (AAIB) acted as lead arrangers, book-runners, and underwriters. AAIB also acted as the custodian bank on the issuance. While the Arab Banking Cooperation (ABC), aiBANK, Attijariwafa Bank, and Banque Misr were subscribers to the issuance. KPMG acted as the financial auditor and ALC-Alieldean Weshahi & Partners acted as the legal advisor.

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