Cairo-based fintech giant valu has successfully closed its 20th securitized bond issuance, raising EGP 1.1 billion ($23.1 million). The transaction was conducted in partnership with EFG Hermes, an EFG Holding company, and marks a significant milestone in the company’s financial strategy.
Kicking Off a New EGP 10 Billion Program
This latest issuance is the first transaction under valU’s newly established 8th securitization program, which has a substantial combined value of EGP 10 billion. The offering is supported by a receivables portfolio assigned to EFG for Securitization, which serves as the special purpose vehicle (SPV) for the deal.
Issuance Structure and Ratings
The bond issuance carries an 18-month tenor and is divided into two fixed-rate tranches, showcasing strong investor confidence as reflected in their credit ratings.
Tranche A is valued at EGP 872.5 million with a 12-month tenor and has received a P1 (sf) rating.
Tranche B, valued at EGP 239 million, has an 18-month tenor and is rated A- (sf).
Investor Confidence and Strategic Growth
Karim Riad, CFO of valU, commented on the successful closure, stating, “This issuance reflects the continued confidence of investors in valU’s financial performance and strategic expansion as we cement our position as Egypt’s leading fintech platform.”
Maie Hamdy, Managing Director of Debt Capital Markets at EFG Hermes, echoed this sentiment. “Launching the first transaction under the new EGP 10 billion program underscores the strength of valU’s business model, the quality of its portfolio, and the strong investor demand it continues to attract,” she said.
EFG Hermes served as the sole financial advisor, transaction manager, bookrunner, underwriter, and arranger. The issuance was also supported by Arab African International Bank (AAIB) and Al Ahli Bank of Kuwait (ABK) as underwriters, with AAIB also acting as custodian. Dreny & Partners provided legal advisory, and Baker Tilly served as the auditor.
About valU
valU is the leading lifestyle-enabling fintech platform in the MENA region, offering comprehensive and convenient financing solutions. Through its app, valU provides seamless access to a wide network of retail and e-commerce providers across various sectors, including home appliances, electronics, fashion, travel, and education.
Source: Zawya
