Introduction


Cairo-based financial technology leader Valu has successfully completed its 11th securitized bond issuance, amounting to EGP 1,091.9 million. This issuance marks the first under Valu's newly approved EGP 16 billion securitization program, setting a significant milestone for the company.

Details of the Bond Issuance


The bond issuance is backed by a receivables portfolio assigned to EFG for Securitization, serving as the special purpose vehicle (SPV) for the transaction. The issuance is structured into two tranches:

  • Tranche A: Valued at EGP 676.98 million, this tranche has a 6-month bond tenor, a Prime 1 (sf) rating, and carries a fixed interest rate.
  • Tranche B: Valued at EGP 414.92 million, this tranche has a 12-month bond tenor, a Prime 2 (sf) rating, and also carries a fixed interest rate.

Strategic Significance for Valu


Commenting on the successful issuance, Shokry Bidair, CFO of Valu, emphasized the importance of this achievement in strengthening Valu’s financial standing. “Finalizing this bond marks a pivotal moment for Valu as we embark on the first issuance under our newly approved EGP 16 billion securitization program. This accomplishment not only bolsters our financial position but also reaffirms our commitment to delivering innovative and accessible financial solutions across the region,” said Bidair. He further highlighted that this move would enable Valu to better meet the evolving needs of its clients, reinforcing the company’s status as a leading fintech powerhouse in the MENA region.

Valu’s Impact on Egypt’s Financial Landscape


Valu is at the forefront of revolutionizing Egypt's financial sector with its innovative products and services tailored to meet the diverse needs of consumers. The company’s flagship Buy Now, Pay Later (BNPL) platform, 'U,' alongside a variety of investment products like the AZ Valu fund and EFG Hermes ONE, empowers customers to achieve their financial aspirations with greater ease.

Continuing its tradition of innovation, Valu has introduced several new solutions designed to enhance the customer experience. These include the instant cash redemption program Sha2labaz, the savings solution Akeed, and the luxury financing program Ulter. Additionally, Valu has expanded its product portfolio by launching co-branded credit and prepaid cards in partnership with Visa, offering customers increased financial flexibility and convenience.

Partnership with EFG Hermes


Maie Hamdy, Managing Director of Debt Capital Markets at EFG Hermes, reflected on the successful completion of Valu's latest bond issuance, underscoring the strong partnership between the two organizations. “The successful finalization of Valu's 11th securitized bond issuance under the newly approved program is a testament to the continued strength of the partnership between EFG Hermes and Valu. Our shared commitment to innovation and financial inclusion is unwavering,” stated Hamdy. She added that EFG Hermes is proud to support initiatives that drive economic growth and create impactful opportunities, expressing dedication to continuing collaboration with Valu as it leads and expands the fintech landscape.

Roles of Key Stakeholders


EFG Hermes played a pivotal role in the issuance, acting as the sole financial advisor, transaction manager, bookrunner, underwriter, and arranger. The Arab African International Bank (AAIB) served as the underwriter and custodian bank for the issuance, while Arab Banking Cooperation (ABC) and other institutions were subscribers. Dreny & Partners provided legal counsel, and Baker Tilly served as the auditor.