EFG Hermes, the investment bank franchise in Frontier and Emerging Markets (FEM), announced on Tuesday that its investment banking division successfully closed valU’s — MENA’s leading lifestyle enabling fintech platform — fourth securitized bond issuance. The transaction, worth EGP 856.5m, comes as part of a wider approved and recently extended EGP 4bn programme.
The bond is backed by a receivables portfolio, assigned to EFG Hermes for Securitization, the issuance’s Special Purpose Vehicle (SPV). It is comprised of a single tranche, with a Prime 1 (sf ) rating and a 12-month tenor.
Commenting on the issuance, Maie Hamdy, Managing Director – Debt Capital Markets at EFG Hermes said, “We are delighted to be seeing our very own valU make headlines in the market as it concludes its fourth securitization issuance and to be playing such a vital role in helping valU’s management bring the company one step closer to achieving its expansion goals and growing its presence and offering in the consumer finance and fintech spaces. Our mission remains the same — to support our clients looking to raise capital with versatile funding streams while unlocking value-accretive investment prospects for local and global investors that enable them to diversify their portfolios and generate superior returns.”
Shokry Bidair, CFO of valU also commented on the issuance saying, “We are pleased to be closing our fourth securitized bond issuance today. This issuance, and the three issuances prior, are a testament to the confidence investors have in valU and its business model, as well as the tremendous growth valU has achieved across its operational footprint since its inception in 2017. Working with EFG Hermes perfectly positions us to continue growing our partner network and breaking ground in more key sectors in Egypt, and to maintain our position as the leading provider of comprehensive and inclusive financial solutions in Egypt and the MENA region at large.”
valU’s fourth securitization issuance comes as part of a series of several back-to-back securitizations the Firm has successfully closed in the debt capital market space. The investment banking division recently concluded advisory on Bedaya Mortgage Finance’s second, EGP 958m securitization issuance, the EGP 638m securitization issuance for Palm Hills Development (PHD), the second, 805.5m issuance for Madinet Nasr for Housing and Development (MNHD), and Al Taamir Mortgage Finance – Al Oula’s first securitization issuance worth EGP 998.5m. The division also concluded advisory on the second, EGP 986m issuance for Misr Italia Properties, and the first future flow securitized bond offering worth EGP 800m for CIRA Education.