Egyptian fintech Valu raises EGP 463.3 mn in its first securitized bond issuance of the year

Valu Completes EGP 463.3 Million Securitization Issuance

Valu, a leading Egyptian fintech company, has successfully closed a securitization issuance valued at EGP 463.3 million. This issuance forms part of a larger EGP 16.0 billion securitization program, as detailed in a company statement. The bonds, secured by a receivables portfolio, received a Prime 1 credit rating and featured a 12-month tenor with a fixed interest rate.

This transaction represents the fourth issuance under the current program, which commenced in August 2024. It also marks Valu's 14th securitized bond issuance overall and its first for the year.

The issuance garnered interest from various institutional investors, including Bank ABC. EFG Hermes and Suez Canal Bank served as underwriters for the transaction.

EFG Hermes played a pivotal role as the sole financial advisor, transaction manager, bookrunner, and arranger for the issuance. Suez Canal Bank acted as the placement agent, while Arab African International Bank served as the custodian bank. Dreny & Partners provided legal advisory services, and Baker Tilly was the auditor.

Shokry Bidair, CFO of Valu, commented on the issuance, stating, "This issuance marks another milestone in our strategic partnership with EFG Hermes as we continue to strengthen our capital structure and fuel our expansion plans. Accessing diversified funding avenues through securitization enables us to further scale our offerings, deliver cutting-edge solutions to our customers, and sustain our leadership position in the fintech space."