Business, Finance

Valu’s Milestone: Closing Eighth Securitized Bond Offering in MENA Region

Valu, a trailblazer in financial technology across the MENA region, has just closed its eighth securitized bond offering, marking a significant stride in the realm of innovative financing. The latest issuance, totaling EGP 888 million (equivalent to approximately USD 19 million), forms part of an extensive program valued at EGP 9.0 billion, as announced by the company.

Underpinning this bond offering is a robust receivables portfolio, entrusted to EFG for Securitization, the special purpose vehicle (SPV) at the helm of managing the transaction. Comprising two distinct tranches, this offering exemplifies Valu’s unwavering commitment to pioneering financial solutions and fostering sustainable growth within its diverse client base.

Tranche A, valued at EGP 639.4 million, features a 6-month bond tenor and carries a Prime 1 (sf) rating, coupled with a fixed interest rate. Meanwhile, Tranche B, valued at EGP 248.6 million, offers a 12-month bond tenor, backed by a Prime 2 (sf) rating, and also boasting a fixed interest rate.

Shokry Bidair, Valu’s esteemed Chief Financial Officer, expressed elation at achieving this significant milestone, highlighting its pivotal role in propelling sustainable growth initiatives and expanding the horizon of financial services for Valu’s esteemed clientele. He reiterated the company’s steadfast commitment to harnessing innovative financing mechanisms to cater to the evolving needs of its customers.

Bidair further elucidated on Valu’s comprehensive suite of financial services, spotlighting recent endeavors such as the groundbreaking Sha2labaz instant cash redemption program, the Akeed savings solution, and the esteemed Ulter luxury financing program. Moreover, Valu has pioneered co-branded credit and prepaid cards in collaboration with Visa, thereby augmenting financial flexibility and convenience for its valued patrons.

Maie Hamdy, the adept Managing Director of Debt Capital Markets at EFG Hermes, lauded the transaction as a testament to Valu’s enduring success and the formidable partnership between EFG Hermes teams. She emphasized EFG Hermes’ unwavering commitment to bolstering Valu’s trajectory of growth, all while expressing optimism for the myriad opportunities that lie ahead.

EFG Hermes spearheaded the transaction as the sole financial advisor and transaction manager, with Arab African International Bank (AAIB) and EFG Hermes assuming the role of underwriters. AAIB also fulfilled the crucial function of serving as the custodian bank, with Arab Banking Cooperation (ABC) and Al Ahli Bank of Kuwait (ABK) among the esteemed subscribers. Legal advisory services were expertly provided by Dreny & Partners, while Baker Tilly lent their expertise as the transaction auditor, rounding out a collaborative effort emblematic of excellence in the financial sphere.

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