Valu Achieves Total Securitizations of Over EGP 10.8 Billion, Reinforcing Its Status as MENA’s Leading Fintech Powerhouse

Cairo 24 December 2024:

Valu, MENA’s leading universal financial technology powerhouse, announced the successful closing of its 13^th securitized bond issuance worth EGP 519.2 million. The milestone marks a remarkable journey since Valu’s inception, with a cumulative total of over EGP 10.8 billion raised across all securitizations.

Valu’s pioneering approach to securitization has been instrumental in its rapid growth. Since launching its first securitized bond issuance in 2021, the company has continually expanded its financial offering. Valu executed six securitizations this year alone—the 8^th through 13^th—raising over EGP 4.9 billion. These achievements highlight the company’s resourceful and agile approach to adopting financial solutions, fueling its rapid growth and helping to redefine financial accessibility and innovation in the fintech space.

The 13^th issuance, the third in the EGP 16 billion securitization program, 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 321.9 million, with a 6-month bond, a Prime 1 (sf) rating, and a fixed interest rate.
Tranche B – Valued at EGP 197.3 million, with a 12-month bond, a Prime 2 (sf) rating, and a fixed interest rate.

Shokry Bidair, CFO of Valu, commented, “Surpassing EGP 10.8 billion in securitizations is a testament to Valu’s vision of proactively implementing financial solutions that drive its growth and deliver value to its customers and stakeholders. This remarkable milestone showcases our ability to innovate and scale while maintaining a focus on financial accessibility and inclusion. This year, in particular, has been a turning point for Valu, with over EGP 4.9 billion raised through five successful securitizations. With the completion of our 13th securitization, we take immense pride in the progress we’ve made. This achievement not only strengthens our financial position but also underscores the trust our partners and stakeholders place in Valu as a leader in fintech. We look forward to continuing our journey of growth and delivering sustainable value to the communities we serve.”

Maie Hamdy, Managing Director – Debt Capital Markets at EFG Hermes, added, “We are proud to deliver yet another successful securitized bond issuance for Valu under its ambitious EGP 16 billion program. This transaction highlights Valu’s robust operational performance and growing leadership in fintech while reinforcing EFG Hermes’ position as the partner of choice for empowering financial solutions. Together, we are driving meaningful progress in financial inclusion and empowering communities across the region.”

EFG Hermes served as the sole financial advisor, transaction manager, bookrunner, underwriter, and arranger on the issuance. 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.

About Valu:

Valu is the leading universal financial technology powerhouse offering customers and businesses convenient and comprehensive financial solutions. Under its product universe, Valu pioneered Buy-Now, Pay-Later (BNPL) solutions in the MENA region through U, providing customizable financing plans for up to 60 months across more than 8,500 stores and online platforms – covering a diverse array of categories, including home appliances, electronics, home finishing, furniture, residential solar solutions, healthcare, education, travel, and fashion, among others. Valu also offers investment products, an instant cash redemption program, savings solutions, and a financing solution to facilitate the purchase of big-ticket items up to EGP 60 million in the luxury space through the AZ Valu fund and EFG Hermes ONE, Sha2labaz, Akeed, and Ulter respectively. In addition, Valu offers business-to-business solutions through Valu Business. Valu had recently introduced its prepaid card and co-branded credit card in collaboration with Visa. As an award-winning fintech player in the MENA region, Valu embraces a progressive mindset with an agile workforce committed to architecting innovative financial solutions.

About EFG Holding

EFG Holding (EGX: HRHO.CA – LSE: EFGD) is a leading financial institution that boasts a remarkable 40-year legacy of success in eight countries spanning two continents. Operating within three distinct verticals — the Investment Bank (EFG Hermes), Non-Bank Financial Institutions (NBFI) (EFG Finance), and Commercial Bank (Bank NXT) — the company provides a comprehensive range of groundbreaking financial products and services tailored to meet the needs of a diverse clientele, including individual clients and businesses of all sizes. EFG Hermes, the leading investment bank in the Middle East and North Africa (MENA), offers an extensive array of financial services, encompassing advisory, asset management, securities brokerage, research, and private equity. In its domestic market, EFG Holding serves as a universal bank, with EFG Finance emerging as the fastest-growing NBFI platform, comprising Tanmeyah, a small and microfinance player, EFG Corp-Solutions, which provides leasing and factoring services, Valu, a universal financial technology powerhouse, PayTabs Egypt, a digital payment platform, as well as Bedaya for mortgage finance and Kaf for insurance as well as Fatura, a technology-backed B2B marketplace. Furthermore, the company delivers commercial banking solutions through Bank NXT, a leading provider of integrated retail and corporate banking products in Egypt.