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

Valu closed a EGP 463.3 mn securitization issuance as part of a wider EGP 16.0 bn program, according to a statement (pdf). The bonds, backed by a receivables portfolio, were Prime 1-rated and had a 12-month tenor with a fixed interest rate.

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Issuance 4.0: This is the fourth issuance of the current program which began in August 2024, the local fintech firm’s 14th ever securitized bond issuance, and its first of the year.

Who bought in? Bank ABC was among those that subscribed to the issuance, while EFG Hermes and Suez Canal Bank were underwriters.

Advisors: Our friends at EFG Hermes also acted as the sole financial advisor, transaction manager, bookrunner, and arranger. Suez Canal Bank was the issuance’s placement agent, Arab African International Bank acted as the custodian bank, Dreny & Partners provided legal advisory, and Baker Tilly was the auditor.

What they said: “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,” said Valu CFO Shokry Bidair.