EFG Hermes has concluded advisory on valU’s first securitisation bond offering valued at EGP 322.550 million as part of a EGP 2 billion securitisation program approved by the Financial Regulatory Authority (FRA) on 25 July.
The issuance is backed by a receivables portfolio worth EGP 369 million assigned to EFG Hermes as the issuance’s special purpose vehicle (SPV), according to a statement on Monday.
The offering received a Prime-1 rating, the highest in the Egyptian bond market, from Middle East Rating Services (MERIS).
Co-Head of Investment Banking at EFG Hermes, Mostafa Gad, said: “We are proud to be embarking on this first-of-its-kind securitisation program for a buy-now, pay-later (BNPL) fintech platform such as valU — a cornerstone of the EFG Hermes’ non-bank financial institutions (NBFI) platform.”
“Having garnered significant interest from financial providers, the transaction’s success also highlights our team’s dedication to diversify our service offering in the debt space and to continue to drive growth for the firm and the clients we serve,” Gad added.
EFG Hermes’ NBFI platform CEO, Walid Hassouna, said: “The transaction comes at a key juncture for the company, where value-added services such as instalment programs and fintech-enabled consumer finance facilities are in high demand. As Egypt’s leading buy-now, pay-later (BNPL) fintech platform, valU has made tremendous strides in the years since inception, and we are thrilled to see it taking these kinds of strategic steps forward in its growth story.”
EFG Hermes was the sole financial advisor, sole transaction manager and book-runner, underwriter, and arranger on the issuance, while Suez Canal Bank acted as underwriter, Arab African International Bank (AAIB) acted as underwriter and custodian, Dreny & Partners as legal advisor, and KPMG as auditor of the transaction.
