ValU, Egypt’s leading financial services technology platform, has successfully raised $10 million (EGP 519.2 million) through its latest securitization of consumer finance receivables. This transaction forms part of ValU’s sixth securitization program, a broader initiative amounting to EGP 16 billion ($312 million) in total issuances. The transaction underscores the fintech firm’s commitment to expanding financial inclusion and bolstering its liquidity.

The deal, which represents the 13th securitization issuance managed by EFG Hermes for ValU, was executed with EFG Hermes Promotion and Underwriting acting as the financial advisor and lead arranger. Arab African International Bank served as trustee and registrar.

In an official statement posted on LinkedIn, EFG Hermes expressed its satisfaction with the successful closure of the transaction. “We are delighted to play a key role in successfully closing this transaction. This achievement further strengthens our strong and enduring partnership with ValU. We express our sincere gratitude to all parties involved for their outstanding professionalism, seamless cooperation, and efforts, which were pivotal to the success of this transaction,” the statement read.

The latest securitization comes on the heels of ValU’s 11th bond issuance, completed in late August. The $22.3 million (EGP 1.091 billion) transaction was the inaugural issuance under the company’s new EGP 16 billion securitization bond program. The issuance was divided into two tranches:

• Tranche A: Valued at $13.8 million (EGP 676.98 million) with a 6-month term, it received a Prime 1 (sf) credit rating and carried a fixed interest rate.
• Tranche B: Valued at $8.4 million (EGP 414.92 million) with a 12-month term, it was assigned a Prime 2 (sf) credit rating and also carried a fixed interest rate.

EFG Holding for Securitization facilitated the securitization process, backed by a portfolio of receivables. Arab African International Bank acted as underwriter and custodian, while Baker Tilly provided audit services, and El-Derini & Partners served as legal advisors.

Shukry Badir, Chief Financial Officer of ValU, emphasized the strategic importance of the new securitization program. “This achievement significantly strengthens ValU’s financial position and reaffirms our commitment to providing innovative and accessible financial solutions to customers across the region,” Badir stated. “We remain dedicated to enhancing our capabilities to meet the evolving needs of our clientele and solidifying our position as a premier financial services technology platform.”

ValU has emerged as a transformative force in Egypt’s financial services sector. Its flagship “Buy Now, Pay Later” (BNPL) platform has empowered millions of consumers by enabling flexible payment solutions. Beyond BNPL, ValU offers an array of investment products such as the AZ Valu Cash Fund and EFG Hermes ONE. The company has also introduced innovative programs including the instant cashback initiative “Shaqlabaz,” the savings product “Akeed,” and the “Ulter” program for luxury goods financing.

ValU recently partnered with Visa to launch the Titanium credit card, providing exclusive benefits to its customers. This move further diversifies the company’s offerings and enhances convenience for its growing customer base.

Mai Hamdy, Executive Director of Debt Capital Markets at EFG Hermes, praised the 11th securitization issuance as a testament to the strong collaboration between EFG Hermes and ValU. “This achievement highlights EFG Hermes’ commitment to financial inclusion, innovation, and economic growth,” Hamdy said. “We are proud to partner with ValU in shaping the future of financial technology in the region.”

The transaction’s success reflects the integrated efforts of several key players. Arab Banking Corporation (ABC) and other financial institutions participated in the subscription process, while EFG Hermes served as the sole financial advisor, issue manager, general arranger, issue promoter, and sole underwriter for the deal.

ValU’s latest securitization deal not only strengthens its financial foundation but also reinforces its role as a pioneer in Egypt’s fintech landscape. As the company continues to innovate and expand its portfolio, it remains well-positioned to drive financial inclusion and economic empowerment across the Middle East and North Africa.