EFG : Valu Closes Sixth Issuance in a Securitized Bond Offering Worth EGP 922.3 Million

Valu Closes Sixth Issuance in a Securitized Bond Offering Worth EGP 922.3 Million

The issuance comes as part of a renewed short-term program and is a strategic step forward in Valu's strategic growth objectives.

Cairo, September 17, 2023

Valu, MENA's leading universal financial technology powerhouse, announced today that it has closed its sixth securitized bond issuance. The EGP 922.3 million issuance is part of a short-term program that has been renewed and is backed by a receivables portfolio assigned to EFG Hermes' Financial Group for Securitization, the issuance's Special Purpose Vehicle (SPV). The securitization is comprised of a singular trance with a 12-month bond tenor valued at EGP 922.3 million and a Prime 1 (sf) rating.

Shokry Bidair, CFO of Valu, expressed the significance of the latest securitization, stating: "With the successful closure of our sixth securitization in partnership with EFG Hermes, we are delighted to continue executing our strategic vision. This transaction is a pivotal step forward in our journey towards sustainable growth and enhancing our ability to provide our customers with an even broader array of innovative financial solutions. By bolstering our liquidity position, this move aligns perfectly with our aspirations to further solidify Valu's position as a comprehensive lifestyle enabler, offering end-to-end fintech solutions that cater to the evolving financial needs of our clients. We remain confident in our ability to achieve both growth and profitability while seizing new opportunities in the market."

Valu remains dedicated to its mission of making finance more accessible and inclusive, and this successful securitization marks another step toward achieving that goal. This transaction marks Valu's third issuance this year, and the sixth concluded in partnership with EFG Hermes to date.

Over the years, Valu has consistently pushed the boundaries of the market by introducing innovative and deeply integrated financial solutions. Today, Valu is a household name in Egypt, having successfully evolved from a Buy-Now-Pay-Later (BNPL) platform into a universal financial technology powerhouse. It plays a pivotal role in fostering financial empowerment and inclusivity within the market, extending its services to include investment products, an instant cash redemption program, and savings solutions through five unique verticals: U, Business, Akeed, Flip, and Invest.

Maie Hamdy, Managing Director - Debt Capital Markets at EFG Hermes, commented on the transaction, saying: "We are proud to continue playing our role in Valu's continued growth, this latest offering in our series of securitization issuances has been covered successfully over one and a half times. This securitization transaction not only underscores our commitment to delivering innovative financial solutions but also highlights the robust collaboration between our teams. We are excited to continue supporting Valu's growth journey and look forward to exploring new opportunities together."

EFG Hermes acted as the sole financial advisor, sole transaction manager, and book-runner. EFG Hermes and the Arab African International Bank (AAIB) acted as lead arrangers, book-runners, and underwriters. AAIB also acted as the custodian bank on the issuance. While the Arab Banking Cooperation (ABC), aiBANK, Attijariwafa Bank, and Banque Misr were subscribers to the issuance. KPMG acted as the financial auditor and ALC-Alieldean Weshahi & Partners acted as the legal advisor.

-Ends-

About Valu

Valu is the leading universal financial technology powerhouse offering customers and businesses convenient and comprehensive financial solutions. Under its product universe, Valu pioneered Buy-Now, Pay-Later (BNPL) solutions in the MENA region, providing customizable financing plans for up to 60 months across more than 5,500 points of sale and over 1,500 websites and apps - covering a diverse array of categories, including home appliances, electronics, home finishing, furniture, residential solar solutions, healthcare, education, travel, and fashion, among others. Valu also offers investment products, an instant cash redemption program, and savings solutions through the AZ Valu fund, Sha2labaz, Ulter and Akeed, respectively. In addition, Valu offers business-to-business solutions with a hassle-free HR payroll services and more. As an award-winning fintech player in the MENA region, Valu embraces a progressive mindset with an agile workforce committed to architecting innovative financial solutions.

May El Gammal

[e-mail]

Omar Salama

[e-mail]

Valu Public Relations Team

[e-mail]

Note on Forward-Looking Statements

In this press release, Valu may make forward-looking statements, including, for example, statements about management's expectations, strategic objectives, growth opportunities, and business prospects. These forward-looking statements are not historical facts but instead represent only Valu's belief regarding future events, many of which, by their nature, are inherently uncertain and are beyond management's control and include, among others, financial market volatility; actions and initiatives taken by current and potential competitors; general economic conditions and the effect of current, pending, and future legislation, regulations, and regulatory actions. Accordingly, the readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made.