Egypt: Valu Closes 16th Securitized Bond Issuance at $17.27mln

Cairo –  U Consumer Finance (Valu) has closed its 16th securitized bond issuance, valued at EGP 858.90 million, in collaboration with EFG Hermes, an EFG Holding Company.

The issuance marks the sixth under Valu’s EGP 16 billion securitization program, according to a press release.

The bond is backed by a receivables portfolio assigned to EFG for securitization, which acts as the special purpose vehicle (SPV) for the offering.

The issuance holds a tenor of 12 months and is rated Prime 1 (sf), with a fixed interest rate.

Valu has officially embarked on securing regulatory approval from the Financial Regulatory Authority (FRA) for its new short-term multi-issuances securitization program.

Set to be executed through up to nine issuances, the program will be backed by its portfolios valued at 13 billion for two years.

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,” Riad added.

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. 

Meanwhile, Dreny & Partners acted as the legal advisor and Baker Tilly as the auditor.