EFG Hermes Closes the 12th Securitized Bond Issuance Worth EGP 667.3 Million for Valu

The issuance is the second under the newly approved EGP 16.0 billion securitization program for Valu and follows the most recent EGP 1.1 billion securitization, which closed in August.

EFG Hermes, an EFG Holding company and the leading Investment Bank in the Middle East and North Africa (MENA), announced today that it has finalized the 12th securitized bond issuance worth EGP 667.3 million for Valu, MENA’s leading universal financial technology powerhouse. The issuance is the second under the newly approved securitization program, which is worth a total of EGP 16.0 billion.

The bond is backed by a receivables portfolio assigned to EFG for Securitization, the issuance’s special purpose vehicle (SPV), and is comprised of two tranches:

·         Tranche A – Valued at EGP 413.7 million, with a 6-month bond, a Prime 1 (sf) rating, and a fixed interest rate.

·         Tranche B – Valued at EGP 253.6 million, with a 12-month bond, a Prime 2 (sf) rating, and a fixed interest rate.

Maie Hamdy, Managing Director – Debt Capital Markets at EFG Hermes, added, “The successful finalization of Valu’s 12th securitized bond issuance underscores Valu’s position as a pioneering force in the financial sector. Our shared commitment to innovation and financial inclusion is unwavering. EFG Hermes is proud to support initiatives that fuel economic growth and create impactful opportunities, and we remain dedicated to working alongside Valu as it continues to lead and expand the fintech landscape.”

EFG Hermes served as the sole financial advisor, transaction manager, bookrunner, underwriter, and arranger on the issuance. First Abu Dhabi Bank Misr (FABMISR) acted as the issuance’s underwriter, and Arab African International Bank (AAIB) acted as the custodian bank. Arab Banking Cooperation (ABC), Attijariwafa Bank Egypt, and others were the subscribers to the issuance. Dreny & Partners was the legal advisor, and Baker Tilly was the auditor.