MENA's Valu boosts financial expansion with $30.8mln bond issuance

PHOTO

MENA's leading fintech platform Valu has closed its seventh securitised bond issuance at a value of 953.10 million, according to a press release.

In line with the approved extended EGP 9 billion programme, this followed the EGP 922.30 million bond issuance in partnership with EFG Holding, which was announced last September.

The bond, which is issued in four tranches, is backed by a receivables portfolio assigned to EFG for Securitization as the issuance’s special purpose vehicle (SPV).

Tranche A is valued at EGP 419.40 million, holding a tenor of six months bond and a P1(sf) rating. The second offering stood at EGP 209.70 million, carrying a maturity period of six months and a P1(sf) rating.

With a tenor of 12-month tenor and a P1(sf) rating, both tranches C and D were auctioned at EGP 209.70 million and EGP 114.40 million, respectively.

Shokry Bidair, CFO of Valu, said: "The enhanced liquidity positions us to fulfill our commitment to financial inclusivity by providing comprehensive financial technology solutions that meet our customers' ever-changing requirements.”

“We are resolute in our pursuit of sustainable growth, unlocking profitability, and seizing dynamic market opportunities,” Bidair added.

It is worth highlighting that EFG Hermes acted as the sole financial advisor, sole transaction manager, book-runner, and arranger.

Meanwhile, EFG Hermes and the Arab African International Bank (AAIB) were underwriters for the transaction.

ALC and Baker Tilly acted as the legal advisor and the auditor, respectively. AAIB acted as the custodian bank on the issuance.

Furthermore, the Arab Banking Cooperation (ABC), aiBANK, and Al Ahli Bank of Kuwait (ABK) were among the subscribers to the issuance.

Earlier in 2023, Valu rolled out plans to launch its business in Jordan next year as part of its expansion and growth strategy following a rebranding to anchor the fintech industry.