ValU, a leading financial services technology platform in the Middle East and North Africa, has successfully completed its 11th securitization bond issuance, raising a total of $22.3 million (EGP 1.091 billion). This marks the inaugural issuance under the company’s newly established EGP 16 billion securitization bond program.
The securitization process, backed by a portfolio of receivables, was entrusted to EFG Holding for Securitization. The issuance was divided into two tranches: Tranche A, valued at $13.8 million (EGP 676.98 million) with a 6-month term, received a Prime 1 (sf) credit rating and a fixed interest rate. Tranche B, valued at $8.4 million (EGP 414.92 million) with a 12-month term, was assigned a Prime 2 (sf) credit rating and also carried a fixed interest rate.
Shukry Badir, CFO of ValU, expressed his satisfaction with the successful completion of the first issuance under the new program. He emphasized that this achievement would significantly strengthen ValU’s financial position and reaffirm its commitment to providing innovative and accessible financial solutions to its customers across the region. Badir underscored the company’s dedication to continuously enhancing its capabilities to meet the evolving needs of its clientele and solidify its leading position as a premier financial services technology platform.
ValU has revolutionized the financial services sector in Egypt by empowering millions of individuals through its buy now, pay later (BNPL) platform, U. In addition, the company offers a diverse range of investment products, including AZ Valu Cash Fund and EFG Hermes ONE, to assist customers in achieving their financial goals. ValU’s commitment to innovation extends beyond these core offerings, as evidenced by its introduction of the instant cashback program “Shaqlabaz,” the savings product “Akeed,” and the “Ulter” program, designed to facilitate the financing of luxury goods.
Recently, ValU partnered with Visa to launch the Titanium credit card, exclusively available to its customers. This new product has expanded the company’s range of services and provided customers with greater flexibility and convenience in their financial transactions.
Mai Hamdy, Executive Director of Debt Capital Markets at EFG Hermes, praised the successful completion of the 11th securitization bond issuance as a testament to the strong collaboration and integration between EFG Hermes Holding’s subsidiaries, particularly the strategic partnership with ValU. Hamdy highlighted EFG Hermes’ commitment to financial inclusion, innovation, and driving economic growth through its support for such initiatives. She expressed the firm’s pride in working with ValU to shape the future of the financial services technology sector in the region.
EFG Hermes served as the sole financial advisor, issue manager, general arranger, issue promoter, and sole underwriter for the issuance. Arab African International Bank (AAIB) acted as the underwriter and custodian, while Arab Banking Corporation (ABC) and other banks and institutions participated in the subscription process. Baker Tilly provided audit services, and El-Derini & Partners acted as the legal advisor for the deal.