ValU, a leading financial services technology company in the Middle East and North Africa, has successfully completed its ninth securitization bond issuance, raising EGP 616.75 million (approximately $13.2 million). This issuance is part of a broader EGP 9 billion (approximately $193 million) securitization bond program.
The securitization, backed by a portfolio of notes receivable, was assigned to EFG Securitization Holding Company. It consisted of two tranches: Tranche A, valued at EGP 370.05 million (≈$8 million), with a 6-month duration and a Prime 1(sf) credit rating; and Tranche B, valued at EGP 246.7 million ($5.2 million), with a 12-month duration and a Prime 2(sf) credit rating. Both tranches carry fixed interest rates. Shukri Badir, ValU’s Chief Financial Officer, expressed satisfaction with the successful completion of the issuance in collaboration with EFG Hermes. He emphasized that this milestone reflects the company’s strong financial position and its commitment to sustainable growth. It also paves the way for ValU to explore innovative approaches to accessing debt markets, further solidifying its position as a leader in financial services technology.
A subsidiary of EFG Hermes established in 2017, ValU has been instrumental in transforming the financial services landscape in Egypt. Through its “U” buy now, pay later (BNPL) platform, it has empowered millions of individuals across the country. ValU also offers a diverse range of investment products, including the “AZ Valu” cash fund and the “EFG Hermes ONE” application, designed to help clients achieve their financial goals.
The company continues to innovate, providing solutions such as the “Shaqlabaz” instant cashback program, the “Akeed” savings product, and “Ulter,” a financing solution for luxury products. Recently, ValU launched a new credit card and a prepaid card in partnership with Visa, further expanding its product portfolio and enhancing customer convenience.
Mai Hamdy, Executive Director of the Debt Markets Department at EFG Hermes, expressed pride in EFG Hermes’s role in ValU’s continued success. She highlighted this deal as a testament to EFG Hermes’s dedication to delivering innovative financial technology solutions and fostering collaboration within the EFG Holding Group.
EFG Hermes served as the sole financial advisor, issue manager, general arranger, and sole underwriter for the issuance. Arab African International Bank (AAIB) acted as underwriter and custodian, with Arab Banking Corporation (ABC) and Al Ahli Bank of Kuwait participating in the subscription process. Baker Tilly served as auditor, while Al-Derini & Partners acted as legal advisor.