ValU, a leading financial services technology company in the Middle East and North Africa, announced today the successful completion of its tenth securitization bond issuance, valued at EGP 1.2 billion (approximately $24.8 million). This issuance is part of a larger EGP 9 billion securitization bond program.
The securitization, backed by a portfolio of notes receivable, was facilitated by EFG Securitization Holding Company. The issuance was divided into two tranches: Tranche A, worth EGP 691.6 million with a 6-month duration, received a Prime 1 (sf) credit rating; Tranche B, valued at EGP 461.0 million with a 12-month duration, received a Prime 2 (sf) credit rating. Both tranches carry a fixed interest rate.
Shukry Badir, Chief Financial Officer at ValU, highlighted the significance of this issuance as a strategic move in the company’s growth and expansion strategy, leveraging diverse financial instruments. Badir stated that the deal’s success underscores the investment community’s confidence in ValU’s robust business model and unwavering commitment to financial transparency and integrity.
The issuance will enable ValU to expand its comprehensive suite of innovative financial solutions and services, catering to the evolving needs of its customers. ValU has established itself as a pioneer in the Egyptian financial services market, empowering millions of individuals through its “U” buy now, pay later (BNPL) platform, diverse investment products like the “AZ Valu” cash fund, and the “EFG Hermes ONE” application.
ValU continues to innovate, offering solutions like the “Shaqlabaz” cashback program, “Akeed” savings product, and “Ulter” luxury product financing. Additionally, the company recently launched a credit card and a prepaid card in collaboration with Visa, further broadening its product and service offerings.
Mai Hamdy, Executive Director of Debt Capital Markets in the Promotion and Underwriting Sector at EFG Hermes, emphasized the successful partnership with ValU, culminating in this tenth issuance. Hamdy commended EFG Hermes’ role in supporting initiatives that foster economic growth and provide attractive opportunities for all stakeholders. She affirmed the continued strengthening of the partnership with ValU to expand their financial product and solution portfolio in the future.
EFG Hermes served as the sole financial advisor, lead manager, general arranger, and sole underwriter for the issuance. Arab African International Bank (AAIB) acted as the underwriter and custodian, while Arab Banking Corporation (ABC) participated in the subscription process. Baker Tilly acted as the auditor, and El-Derini & Partners served as the legal advisor for the transaction.