Valu Closes its 16th Securitized Bond Issuance, Worth EGP 858.9 Million

Tahya Masr

a day ago

Valu, MENA's leading universal financial technology powerhouse, announced today the successful closing of its 16th securitized bond issuance, valued at EGP 858.9 million, in collaboration with EFG Hermes, an EFG Holding company and the leading investment bank in the Middle East and North Africa (MENA). The issuance is the sixth under Valu's EGP 16.0 billion ongoing securitization program.
The bond is backed by a receivables portfolio assigned to EFG for Securitization, which acts as the special purpose vehicle (SPV) for the issuance. It is a 12-month bond, rated Prime 1 (sf), and carries a fixed interest rate.
Building on this remarkable momentum, Valu has officially embarked on securing regulatory approval from the Financial Regulatory Authority (FRA) for its highly anticipated new short term multi-issuances securitization program, with a total value of EGP 10.0 billion that will be backed by Valu's portfolios amounting to 13.0 billion for two years. Set to be executed through up to nine issuances. The new program marks a significant milestone in Valu's ambitious growth journey, reinforcing its market leadership and commitment to delivering innovative, market-shaping financial solutions.
Karim Riad, CFO of Valu, commented, 'Following our commencement of trading on the Egyptian Exchange (EGX), combined with Amazon's transaction, and as part of our continuous expansion, securitizations remain a vital pillar of our financial strategy, enabling us to unlock greater capital efficiency and accelerate our growth trajectory. By leveraging securitizations, we are diversifying our funding base and driving strategic growth. This latest issuance underscores our commitment to fostering innovation and maintaining our position as the preferred fintech partner in Egypt.'
Maie Hamdy, Managing Director – Debt Capital Markets at EFG Hermes, added, 'This issuance marks another successful chapter in our long-standing partnership with Valu, reflecting our deep commitment to providing dynamic financing solutions that support Egypt's rapidly evolving fintech landscape. Our ability to consistently structure and close high-impact transactions is a testament to the strength of our capital markets franchise and our client-centric approach .
EFG Hermes acted as the sole financial advisor, sole transaction manager, bookrunner, underwriter, and arranger on the issuance. Arab African International Bank (AAIB) served as both the underwriter and custodian. Arab Banking Cooperation (ABC) and Industrial Development Bank (IDB) were the subscribers to the issuance. Dreny & Partners acted as the legal advisor, and Baker Tilly as the auditor.