Valu Closes its 16th Securitized Bond Issuance, Worth EGP 858.9 Million

Published 2 weeks ago• 4 minute read

Valu, MENA’s leading universal financial technology powerhouse, announced today the successful closing of its 16th securitized bond issuance, valued at EGP 858.9 million, in collaboration with EFG Hermes, an EFG Holding company and the leading investment bank in the Middle East and North Africa (MENA).

The issuance is the sixth under Valu’s EGP 16.0 billion ongoing securitization program.
The bond is backed by a receivables portfolio assigned to EFG for Securitization, which acts as the special purpose vehicle (SPV) for the issuance. It is a 12-month bond, rated Prime 1 (sf), and carries a fixed interest rate.

Building on this remarkable momentum, Valu has officially embarked on securing regulatory approval from the Financial Regulatory Authority (FRA) for its highly anticipated new short term multi-issuances securitization program, with a total value of EGP 10.0 billion that will be backed by Valu’s portfolios amounting to 13.0 billion for two years. Set to be executed through up to nine issuances. The new program marks a significant milestone in Valu’s ambitious growth journey, reinforcing its market leadership and commitment to delivering innovative, market-shaping financial solutions.

Karim Riad, CFO of Valu, commented, “Following our commencement of trading on the Egyptian Exchange (EGX), combined with Amazon’s transaction, and as part of our continuous expansion, securitizations remain a vital pillar of our financial strategy, enabling us to unlock greater capital efficiency and accelerate our growth trajectory. By leveraging securitizations, we are diversifying our funding base and driving strategic growth. This latest issuance underscores our commitment to fostering innovation and maintaining our position as the preferred fintech partner in Egypt”.

Maie Hamdy, Managing Director – Debt Capital Markets at EFG Hermes, added, “This issuance marks another successful chapter in our long-standing partnership with Valu, reflecting our deep commitment to providing dynamic financing solutions that support Egypt’s rapidly evolving fintech landscape. Our ability to consistently structure and close high-impact transactions is a testament to the strength of our capital markets franchise and our client-centric approach”.

EFG Hermes acted as the sole financial advisor, sole transaction manager, bookrunner, underwriter, and arranger on the issuance. Arab African International Bank (AAIB) served as both the underwriter and custodian. Arab Banking Cooperation (ABC) and Industrial Development Bank (IDB) were the subscribers to the issuance. Dreny & Partners acted as the legal advisor, and Baker Tilly as the auditor.

Valu is the leading universal financial technology powerhouse offering customers and businesses convenient and comprehensive financial solutions.

Under its product universe, Valu pioneered Buy-Now, Pay-Later (BNPL) solutions in the MENA region through U, providing customizable financing plans for up to 60 months across more than 8,500 stores and online platforms – covering a diverse array of categories, including home appliances, electronics, home finishing, furniture, residential solar solutions, healthcare, education, travel, and fashion, among others.

Valu also offers investment products, an instant cash redemption program, and a financing solution to facilitate the purchase of big-ticket items up to EGP 60 million in the luxury space through the AZ Valu fund and EFG Hermes ONE, Sha2labaz, and Ulter, respectively. In addition, Valu offers business-to-business solutions through Valu Business.

Valu had recently introduced its prepaid card and co-branded credit card in collaboration with Visa. As an award-winning fintech player in the MENA region, Valu embraces a progressive mindset with an agile workforce committed to architecting innovative financial solutions.

EFG Holding (EGX: HRHO.CA – LSE: EFGD) is a financial institution that boasts a remarkable 40-year legacy of success in seven countries spanning two continents. Operating within three distinct verticals — the Investment Bank (EFG Hermes), Non-Bank Financial Institutions (NBFI) (EFG Finance), and Commercial Bank (Bank NXT) — the company provides a comprehensive range of groundbreaking financial products and services tailored to meet the needs of a diverse clientele, including individual clients and businesses of all sizes.

EFG Hermes, the leading investment bank in the Middle East and North Africa (MENA), offers extensive financial services, encompassing advisory, asset management, securities brokerage, research, and private equity.

In its domestic market, EFG Holding serves as a universal bank, with EFG Finance emerging as the fastest-growing NBFI platform, comprising Tanmeyah, a provider of innovative and integrated financial solutions for small business owners and entrepreneurs, EFG Corp-Solutions, which provides leasing and factoring services, Valu, a universal financial technology powerhouse, Bedaya for mortgage finance, Kaf for insurance, and EFG Finance SMEs, which provides financial services for small and medium enterprises.

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