Valu closed its 17th securitized bond issuance, worth EGP 460.7 mn, according to a statement (pdf). The issuance is the first under the company’s newly-approved EGP 10 bn securitization program — Valu’s fourth to date. The bond is backed by a receivables portfolio assigned to EFG for Securitization, which acted as the SPV. The issuance was rated Prime 1 and matures in 12 months.

BACKGROUND- Valu closed its 16th securitized bond issuance of EGP 859 mn under itsprevious EGP 16 bn program in June. Two weeks later, the Financial Regulatory Authority approved its new EGP 10 bn program, allowing the company to roll out up to nine issuances, backed by EGP 13 bn in portfolios, over two years.

Who bought in: Industrial Development Bank of Egypt, Bank ABC, and Attijariwafa Bank were among the subscribers.

What they said: “This issuance marks a pivotal milestone in our ongoing strategy to diversify our funding base and strengthen our capital structure. Launching the first transaction under our newly approved EGP 10 bn program reflects our confidence in the market and our commitment to scaling responsibly. Coming on the heels of our successful listing on the Egyptian Exchange, this transaction further demonstrates our ability to access diverse capital markets and reinforces our position as a leading force in Egypt’s fintech ecosystem,” said Karim Riad, CFO of Valu.

ADVISORS- EFG Hermes acted as the sole financial advisor, transaction manager, bookrunner, underwriter, and arranger. Arab African International Bank was an underwriter and custodian. Dreny & Partners provided counsel, while Baker Tilly served as the auditor.

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