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Arab Finance: valU has closed its 20th securitized bond issuance at an amount of EGP 1.1 billion, in partnership with EFG Hermes, an EFG Holding company, according to a press release.
The transaction marks the first issuance under Valu's new 8th securitization program, which has a combined value of EGP 10 billion.
The offering is backed by a receivables portfolio assigned to EFG for Securitization, which acts as the special purpose vehicle (SPV) for the issuance.
Meanwhile, the issuance carries an 18-month tenor and is structured into two fixed-rate tranches.
Tranche A amounts to EGP 872.5 million, with a 12-month tenor and P1 (sf) rating.
Meanwhile, tranche B is an 18-month bond that is valued at EGP 239 million and rated A- (sf).
Karim Riad, CFO of Valu, commented: "This issuance reflects the continued confidence of investors in Valu's financial performance and strategic expansion as we cement our position as Egypt's leading fintech platform."
Maie Hamdy, Managing Director - Debt Capital Markets at EFG Hermes, said: “Launching the first transaction under the new EGP 10 billion program underscores the strength of Valu's business model, the quality of its portfolio, and the strong investor demand it continues to attract."
EFG Hermes acted as sole financial advisor, sole transaction manager, bookrunner, underwriter, and arranger on the issuance.
Arab African International Bank (AAIB) and Al Ahli Bank of Kuwait (ABK) served as underwriters, while AAIB acted as custodian. Dreny & Partners was the legal advisor, whereas Baker Tilly participated in the transaction as an auditor.
In November, valU concluded its 19th securitized bond issuance at EGP 735 million.
