valU closes fourth securitized bond issuance:EFG Hermes Holding’sconsumer finance arm valU has issued EGP 856.5 mn worth of securitized bonds, according to a statement (pdf). The issuance consists of a single tranche of 12-month bonds backed by a receivables portfolio. The bonds earned a “prime-1” rating.

valU now has a bigger securitization program: The consumer finance player has doubled the size of the program to EGP 4 bn. The latest issuance means valU has completed around two-thirds of the program, which kicked off in September 2021.

There’s more in the pipeline: valU is studying a second securitization program worth EGP 5 bn which it hopes to start later this year, CEO Walid Hassouna told us in January. It is looking to raise EGP 4.5 bn from issuances this year — including EGP 1.1 bn worth of bonds during 1Q 2023 and three more issuances of around EGP 1.1 bn before the end of the year.

Advisors: EFG Hermes acted as the sole financial advisor, transaction manager, and book-runner on the issuance, according to the statement. It was also arranger and underwriter. Arab African International Bank (AAIB) acted as an underwriter and custodian, while Arab Banking Corporation (ABC) and aiBank also subscribed to the issuance. KPMG was the auditor, and ALC Alieldean Weshahi & Partners was legal advisor.

2023 so far: The latest issuance takes the total value of asset-backed securities issued this year to EGP 10.4 bn. This is 5% higher than the same period in 2022.

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