Valu, a leading fintech company in the Middle East and North Africa, announced today that it has successfully closed its sixth securitization bond issuance worth EGP 922.3m. The issuance is part of a short-term program that is backed by a portfolio of receivables assigned to a special purpose vehicle (SPV) managed by EFG Hermes, the financial advisor and transaction manager for the deal.
The securitization bond has a single tranche with a 12-month maturity and a Prime 1 rating. It is the third issuance by Valu this year and the sixth in partnership with EFG Hermes.
Valu’s CFO, Shokry Bidair, said that the securitization bond is a strategic step to enhance the company’s liquidity and growth potential. He said that Valu aims to provide its customers with innovative and comprehensive financial solutions that cater to their evolving needs.
Valu started as a buy-now-pay-later (BNPL) platform in Egypt but has since expanded its services to include investment products, instant cash redemption, and savings solutions through five verticals: U, Business, Akeed, Flip, and Invest. Valu is now a universal fintech powerhouse that plays a pivotal role in fostering financial inclusion and empowerment in the market.
EFG Hermes acted as the sole financial advisor, transaction manager, and bookrunner for the securitization bond. It also partnered with the Arab African International Bank (AAIB) as lead arrangers, book-runners, and underwriters. AAIB also acted as the custodian bank for the issuance. Other subscribers to the issuance were the Arab Banking Corporation (ABC), aiBANK, Attijariwafa Bank, and Banque Misr.
Maie Hamdy, Managing Director of Debt Capital Markets at EFG Hermes, commented on the transaction, saying that it reflects the strong collaboration between EFG Hermes and Valu. She said that EFG Hermes is proud to support Valu’s growth journey and to deliver innovative financial solutions to the market. She also said that the securitization bond was oversubscribed by more than 1.5 times, indicating the high demand and confidence in Valu’s business model.
The financial auditor for the transaction was KPMG and the legal advisor was ALC-Alieldean Weshahi & Partners.
