Egyptian buy-now-pay-later and consumer finance provider ValU has secured a short-term financing facility of up to EGP 3bn (approximately $63.5m) from the National Bank of Egypt (NBE), underscoring the growing role of bank-backed liquidity in sustaining the country’s non-banking financial sector.
The agreement was signed this week by senior executives from both organisations, including NBE deputy CEOs Soha Al-Turki and Yehia Abou El Fotouh, alongside ValU CEO Walid Hassouna. While framed as a routine credit facility, the deal highlights how Egypt’s largest consumer finance players are increasingly leaning on traditional banks to bridge funding gaps — particularly ahead of capital market transactions.
Bridging finance ahead of bond issuance
According to NBE, the facility is intended to fund ValU’s ongoing operations until the company completes the issuance of new bonds. In practical terms, this positions the financing as a stopgap measure rather than long-term growth capital, providing liquidity continuity in a market where access to capital has become more selective.
Egypt’s consumer finance sector — especially instalment-based products — has expanded rapidly in recent years, fuelled by inflationary pressure, currency devaluation and shrinking household purchasing power. But that growth has also increased funding needs, forcing companies to juggle bank credit, securitisations and bond issuances to maintain balance sheet stability.
NBE described the facility as part of its broader strategy to support the non-banking financial sector, particularly companies it views as capable of delivering “innovative and responsible” financing solutions within regulatory boundaries set by Egypt’s Financial Regulatory Authority (FRA).
A vote of confidence — or cautious risk management?
Speaking after the signing, Al-Turki said the facility reflects the bank’s confidence in ValU’s business model and its role in expanding financial inclusion. She also emphasised NBE’s intention to deepen partnerships with non-banking financial institutions, framing the deal as aligned with sustainable economic growth and responsible lending practices.
That confidence, however, appears carefully calibrated. The short-term nature of the financing — and its explicit linkage to a forthcoming bond issuance — suggests a measured approach rather than an open-ended bet on consumer credit growth. For banks operating in a volatile macroeconomic environment, structured exposure to consumer finance remains preferable to long-duration risk.
ValU’s position in a crowded market
Founded in 2017, ValU operates as an Egyptian joint-stock company and is part of EFG Holding Group. It has emerged as one of the country’s most prominent consumer finance platforms, offering instalment-based payment solutions across retail, healthcare, education and lifestyle categories.
The company has benefited from Egypt’s regulatory framework for consumer finance, which has brought BNPL-style products under formal oversight. That regulatory clarity has helped legitimise the sector — but it has also increased compliance costs and capital requirements, reinforcing the importance of diversified funding sources.
Hassouna described the NBE facility as providing operational flexibility during a transitional phase, allowing ValU to manage day-to-day financing while preparing for longer-term capital market activity. He also noted that NBE has been a long-standing banking partner since the company’s early days.
A signal for Egypt’s consumer finance sector
While the deal does not introduce new capital into the ecosystem, it signals continued institutional support for large, regulated consumer finance players — particularly those with established banking relationships and access to debt markets.
For smaller fintechs and newer BNPL entrants, the message may be less encouraging. As funding conditions tighten, scale, regulatory compliance and bankability are increasingly becoming prerequisites for survival rather than competitive advantages.
In that sense, ValU’s EGP 3bn facility is less about acceleration and more about endurance — a reminder that, in Egypt’s consumer finance market, stability now matters as much as growth.