EFG Hermes, a subsidiary of EFG Holding and the leading investment bank in the Middle East and North Africa (MENA), announced the successful conclusion of the 12th securitized bond issuance worth EGP 667.3 million for Valu, a financial technology leader in the region. This issuance is the second installment under Valu’s newly approved EGP 16.0 billion securitization program, following an earlier issuance of EGP 1.1 billion closed in August.
The bond is backed by a receivables portfolio assigned to EFG for Securitization, the designated special purpose vehicle (SPV). The issuance is divided into two tranches:
- Tranche A: Valued at EGP 413.7 million, this tranche features a 6-month bond with a Prime 1 (sf) rating and a fixed interest rate.
- Tranche B: Valued at EGP 253.6 million, this tranche offers a 12-month bond with a Prime 2 (sf) rating and a fixed interest rate.
Expanding Financial Inclusion
Commenting on the milestone, Maie Hamdy, Managing Director of Debt Capital Markets at EFG Hermes, stated:
“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.”
Roles and Partnerships in the Issuance
EFG Hermes acted as the sole financial advisor, transaction manager, bookrunner, underwriter, and arranger for the issuance. Other key roles included:
- Underwriting: First Abu Dhabi Bank Misr (FABMISR)
- Custodian Bank: Arab African International Bank (AAIB)
- Subscribers: Arab Banking Corporation (ABC), Attijariwafa Bank Egypt, and other institutions
- Legal Advisor: Dreny & Partners
- Auditor: Baker Tilly
About Valu and the EGP 16.0 Billion Securitization Program
Valu, MENA’s leading universal financial technology powerhouse, continues to leverage the securitization program to expand its market impact. This program, which aims to mobilize EGP 16.0 billion in funding, is designed to strengthen Valu’s ability to drive innovation in financial technology and provide inclusive solutions to a broad customer base.
EFG Holding: Pioneering Financial Solutions
EFG Holding (EGX: HRHO.CA – LSE: EFGD) is a prominent financial institution with a 40-year track record of success across eight countries in two continents. The group operates through three key verticals:
- Investment Bank (EFG Hermes): A leading entity in MENA offering advisory, asset management, securities brokerage, research, and private equity services.
- Non-Bank Financial Institutions (NBFI): Comprising diverse services such as microfinance (Tanmeyah), leasing and factoring (EFG Corp-Solutions), financial technology (Valu), digital payments (PayTabs Egypt), mortgage finance (Bedaya), insurance (Kaf), and B2B marketplaces (Fatura).
- Commercial Bank (Bank NXT): Delivering retail, corporate, and Islamic banking solutions in Egypt.
EFG Holding is present in Egypt, UAE, Saudi Arabia, Kuwait, Bahrain, Pakistan, Kenya, and Nigeria, providing innovative financial services tailored to clients ranging from individuals to large-scale businesses.
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