Valu closes EGP 1 bn maiden corporate bond

Valu closed its maiden conventional corporate bond issuance, raising EGP 1 bn under a newly established EGP 10 bn program, according to a company statement (pdf). The transaction gives Valu a new route to debt financing beyond its established use of receivables-backed securitizations and bank facilities.

The issuance was split across two A- rated tranches: a fixed-rate EGP 460 mn tranche with a 13-month tenor and a floating-rate EGP 540 mn tranche with a 36-month tenor. The fixed tranche carries a 20.75% coupon, while the floating tranche is priced at 1% above the CBE’s average corridor rate, according to terms disclosed earlier this month. Allocating 54% of the issuance to floating-rate Tranche B ensures slightly more than half of Valu’s new funding will automatically become cheaper as the central bank resumes monetary easing, rather than locking in high fixed yields on the full EGP 1 bn.

REMEMBER- Conventional bonds are only the newest leg of Valu’s debt stack. The company completed its 22nd securitization in 2Q — an EGP 881 mn issuance that brought its cumulative securitized volume to EGP 21.2 bn. CEO Walid Hassouna had initially targeted an EGP 2-3 bn conventional bond issuance for 1Q 2026, making the completed EGP 1 bn transaction both smaller and later than first planned.

ADVISORS- EFG Hermes acted as the sole financial advisor, transaction manager, bookrunner, underwriter, and arranger. Matouk Bassiouny & Hennawy served as counsel, while Baker Tilly acted as auditor.

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