Egyptian financial technology leader valU has successfully closed its 19th securitized bond issuance, valued at EGP 735.0 million. The transaction, completed in partnership with EFG Hermes, marks the third issuance under the company’s fifth securitization program, underscoring continued investor confidence in its growth trajectory.
Details of the Issuance
The bond is backed by a receivables portfolio assigned to EFG for Securitization, which serves as the special purpose vehicle (SPV) for the issuance. The offering has a total tenor of 17 months and is divided into two fixed-rate tranches to attract a diverse range of investors.
Tranche A is valued at EGP 621.1 million with a 12-month term and holds a P1 (sf) rating. Tranche B amounts to EGP 113.9 million with a 17-month term and is rated A- (sf).
A Partnership with EFG Hermes
The issuance highlights a continued strategic partnership between valU and EFG Hermes, an EFG Holding company and a leading investment bank in the MENA region. EFG Hermes acte
as the sole financial advisor, transaction manager, bookrunner, underwriter, and arranger for the deal.
The transaction was further supported by Arab African International Bank (AAIB), which served as underwriter and custodian. Dreny & Partners acted as the legal advisor, with Baker Tilly serving as the auditor.
Sustaining Growth Momentum
This successful capital raise reflects strong market confidence in valU’s financial performance and strategic vision as it continues to innovate within Egypt’s burgeoning fintech landscape.
Karim Riad, CFO of valU, commented: “We are pleased to mark yet another successful milestone in Valu’s growth journey with the closing of our 19th securitization issuance. Our consistent access to capital markets reflects investors’ confidence in Valu’s financial performance and strategic direction as we continue to expand our footprint and drive innovation within Egypt’s fintech sector.”
Maie Hamdy, Managing Director of Debt Capital Markets at EFG Hermes, added: “We’re proud to continue our strategic partnership with Valu through this latest issuance, which highlights the strength and resilience of their business model and the depth of investor trust they’ve cultivated over the years. This deal reinforces EFG Hermes’ leading position in structuring and executing securitization transactions that support high-growth institutions in achieving their long-term financial and strategic objectives.”
About Valu
Valu is a leading universal financial technology powerhouse offering customers and businesses convenient and comprehensive financial solutions. It is the first fintech company providing consumer finance to become a listed company on the Egyptian Exchange (EGX). Under its product universe, Valu pioneered Buy-Now, Pay-Later (BNPL) solutions in the MENA region through U, providing customizable financing plans for up to 60 months across more than 8,500 stores and online platforms. Valu also offers investment products, an instant cash redemption program, and a high-end financing program to facilitate the purchase of big-ticket items. In addition, Valu offers business-to-business solutions through Valu Business and has introduced prepaid and co-branded credit cards in collaboration with Visa.
Source: Zawya
