CEO Walid Hassouna
Egypt’s foremost financial services technology platform, ValU, has secured $10 million (EGP 519.2 million) through its latest securitization of consumer finance receivables. The transaction, a testament to the fintech’s commitment to expanding financial inclusion, forms part of ValU’s sixth securitization program – an initiative that has raised a total of $312 million (EGP 16 billion) in total issuances.
The deal, which was the 13th securitization issuance managed by EFG Hermes for ValU, was signed off with EFG Hermes Promotion and Underwriting acting as the financial advisor and lead arranger. The Arab African International Bank served as trustee and registrar.
The latest securitization comes on the heels of ValU’s 11th bond issuance which was completed in late August. The $22.3 million (EGP 1.091 billion) transaction was the inaugural issuance under the company’s new EGP 16 billion securitization bond program. The issuance was divided into two tranches:
- Tranche A: Valued at $13.8 million (EGP 676.98 million) with a 6-month term, it received a Prime 1 (sf) credit rating and carried a fixed interest rate.
- Tranche B: Valued at $8.4 million (EGP 414.92 million) with a 12-month term, it was assigned a Prime 2 (sf) credit rating and also carried a fixed interest rate.
EFG Holding for Securitization facilitated the securitization process, backed by a portfolio of receivables. Arab African International Bank acted as underwriter and custodian, while Baker Tilly provided audit services, and El-Derini & Partners served as legal advisors.
In an official statement posted on LinkedIn, EFG Hermes expressed its satisfaction with the successful closure of the transaction. “We are delighted to play a key role in successfully closing this transaction. This achievement further strengthens our strong and enduring partnership with ValU. We express our sincere gratitude to all parties involved for their outstanding professionalism, seamless cooperation, and efforts, which were pivotal to the success of this transaction,” the statement read.
Shukry Badir, Chief Financial Officer of ValU, emphasized the strategic importance of the new securitization program. “This achievement significantly strengthens ValU’s financial position and reaffirms our commitment to providing innovative and accessible financial solutions to customers across the region. We remain dedicated to enhancing our capabilities to meet the evolving needs of our clientele and solidifying our position as a premier financial services technology platform.” Badir stated.
ValU has emerged as a force to reckon with in Egypt’s financial services sector. Its “Buy Now, Pay Later” (BNPL) platform has helped millions of consumers by enabling flexible payment solutions. Apart from BNPL, ValU offers a wide variety of investment products such as the AZ Valu Cash Fund and EFG Hermes ONE. The company has also introduced innovative programs including the instant cashback initiative “Shaqlabaz,” the savings product “Akeed,” and the “Ulter” program for luxury goods financing.
In a move that further diversifies the company’s offerings and enhances convenience for its growing customer base, ValU recently partnered with Visa to launch the Titanium credit card, providing exclusive benefits to its customers.
Mai Hamdy, Executive Director of Debt Capital Markets at EFG Hermes, praised the 11th securitization issuance as a testament to the strong collaboration between EFG Hermes and ValU. “This achievement highlights EFG Hermes’ commitment to financial inclusion, innovation, and economic growth,” Hamdy said. “We are proud to partner with ValU in shaping the future of financial technology in the region.”
The transaction’s success reflects the integrated efforts of several key players. Arab Banking Corporation (ABC) and other financial institutions participated in the subscription process, while EFG Hermes served as the sole financial advisor, issue manager, general arranger, issue promoter, and sole underwriter for the deal.
