Valu Successfully Closes EGP 922.3 Million Securitized Bond Issuance in Partnership with EFG Hermes
Valu, a leading financial technology provider in the MENA region, has announced the successful completion of its sixth securitized bond issuance, valued at EGP 922.3 million. The issuance is part of a renewed short-term program and is backed by a receivables portfolio assigned to EFG Hermes’ Financial Group for Securitization, the Special Purpose Vehicle (SPV) for the issuance. The transaction consists of a single tranche with a 12-month bond tenor and holds a Prime 1 (sf) rating. This marks Valu’s third issuance in partnership with EFG Hermes in 2023 and contributes to Valu’s mission of enhancing financial accessibility and inclusivity in the region.
Key Points:
- Valu, a prominent fintech company in the MENA region, has successfully closed its sixth securitized bond issuance, totaling EGP 922.3 million.
- The issuance is part of a renewed short-term program and is backed by a receivables portfolio assigned to EFG Hermes’ Financial Group for Securitization, acting as the Special Purpose Vehicle (SPV).
- The transaction comprises a single tranche with a 12-month bond tenor and holds a Prime 1 (sf) rating.
- Shokry Bidair, CFO of Valu, emphasized the significance of this transaction in realizing the company’s strategic vision and its commitment to offering innovative financial solutions.
- Valu’s mission is to enhance financial accessibility and inclusivity, and this successful securitization is aligned with that objective.
- This transaction represents Valu’s third issuance in 2023 and the sixth conducted in collaboration with EFG Hermes.
Analysis: Valu’s successful securitized bond issuance reflects its dedication to expanding financial accessibility and inclusivity in the MENA region. By utilizing innovative financial solutions and establishing partnerships with reputable institutions like EFG Hermes, Valu continues to advance its mission. The issuance’s Prime 1 (sf) rating attests to the robustness and credibility of the transaction.
This development reinforces Valu’s position as a significant player in the regional fintech landscape, providing a range of financial products and services. Valu’s evolution from a Buy-Now-Pay-Later (BNPL) platform to a comprehensive fintech provider demonstrates its adaptability and commitment to meeting the evolving financial needs of its clients.
The involvement of financial institutions like EFG Hermes, AAIB, and others underscores the confidence in Valu’s growth trajectory and its potential to contribute to financial empowerment in the region. The continued collaboration between Valu and EFG Hermes is a testament to the strength of their partnership and their shared commitment to driving innovation in the financial sector.