Valu Closes its Eighth Securitization worth EGP 888 Million in a Securitized Bond Offering Aimed at Fueling its Growth and Innovation Plans

Cairo, March 24, 2024

Valu, MENA’s leading universal financial technology powerhouse, announced today that it has closed its eighth securitized bond issuance worth EGP 888 million. The issuance is part of the approved extended program worth EGP 9.0 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 639.4 million, with a 6-month bond tenor, a Prime 1 (sf) rating, and a fixed interest rate.
• Tranche B – Valued at EGP 248.6 million, with a 12-month bond tenor, a Prime 2 (sf) rating, and a fixed interest rate.

Shokry Bidair, CFO of Valu, said, “We are excited about the latest securitized bond offering, which signifies a major milestone in our strategic journey. With the successful closure of our eighth securitization issuance in partnership with EFG Hermes, we are taking a significant step towards sustainable growth and expanding our ability to deliver diverse and innovative financial services to our clients. This offering builds on our past successes and sets the stage for us to explore new and innovative ways to access the debt capital market, supporting our ambitious growth objectives. By strengthening our financial base, we are reaffirming our commitment to cementing Valu as a leading financial technology powerhouse, delivering comprehensive financial solutions tailored to meet the evolving needs of our customers.”

Valu, is revolutionizing the financial landscape in Egypt by enriching the lives of millions with its cutting-edge offerings. The company’s flagship BNPL platform ‘U’ and a diverse array of investment products, such as the AZ Valu fund and EFG Hermes ONE, are empowering customers to achieve their financial goals with ease. In addition to these services, Valu continues to introduce innovative solutions to meet its customers’ evolving needs. From the instant cash redemption program Sha2labaz to the convenient savings solution Akeed and the luxury financing program Ulter, Valu is committed to providing comprehensive financial services tailored to enhance the customer experience. Recently, Valu has unveiled its co-branded credit card and prepaid card in partnership with Visa, expanding its range of offerings to provide greater financial flexibility and convenience to its customers.

Maie Hamdy, Managing Director – Debt Capital Markets at EFG Hermes, commented on the transaction, saying, “We are thrilled to be a part of Valu’s continued success story. This latest transaction not only underscores our dedication to providing innovative financial solutions but also showcases the exceptional collaboration between our teams at EFG Holding. We are thrilled to play a pivotal role in fueling Valu’s remarkable growth trajectory, and we eagerly anticipate the boundless opportunities that lie ahead for our dynamic partnership.”

EFG Hermes was the sole financial advisor and sole transaction manager. EFG Hermes and Arab African International Bank (AAIB) also acted as the issuance’s underwriters. African International Bank (AAIB) also acted as the custodian bank. Arab Banking Cooperation (ABC), and Al Ahli Bank of Kuwait (ABK) were within the subscribers to the issuance. Dreny & Partners acted as the legal advisor. Baker Tilly acted as the transaction’s 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, providing customizable financing plans for up to 60 months across more than 6,000 points of sale and over 1,500 websites and apps – 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, and savings solutions through the AZ Valu fund, Sha2labaz, Ulter, and Akeed, respectively. In addition, Valu offers business-to-business solutions with hassle-free HR payroll services and more. Valu has recently released its co-branded credit card and its prepaid card in partnership 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.