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Valu Announces Completion of its Eighth Securitization Issuance with EFG Hermes Collaboration

Valu has successfully completed its eighth securitization issuance, marking a significant milestone in its strategic growth path, in collaboration with EFG Hermes. This issuance is divided into two segments: Tranche A, with a value of EGP 639.4 million, a 6-month maturity, and a Prime 1 (sf) rating, and Tranche B, worth EGP 248.6 million, with a 12-month maturity and a Prime 2 (sf) rating. Both tranches offer a fixed interest rate. Shokry Bidair, Valu’s CFO, expressed enthusiasm about this achievement, highlighting it as a critical step towards achieving sustainable growth and expanding the company’s ability to offer a wide range of innovative financial services. This effort builds upon Valu’s previous successes and aims to open new avenues in the debt capital market to support its ambitious growth plans. Through enhancing its financial foundation, Valu reinforces its commitment to becoming a dominant force in financial technology, offering tailored financial solutions that cater to the changing needs of its customers.

Valu is transforming Egypt’s financial scene, improving the lives of millions with its advanced solutions. Its leading BNPL (Buy Now, Pay Later) platform ‘U’, along with a variety of investment products like the AZ Valu fund and EFG Hermes ONE, empower customers to achieve their financial aspirations easily. Valu is continually developing innovative services to meet the growing demands of its clientele, including the instant cash redemption program Sha2labaz, the convenient savings program Akeed, and the luxury financing scheme Ulter. Moreover, Valu has recently launched a co-branded credit and prepaid card with Visa, broadening its range of services to offer increased financial flexibility and convenience.

Maie Hamdy, the Managing Director of Debt Capital Markets at EFG Hermes, also commented on the transaction, expressing excitement about being part of Valu’s growth story. The transaction highlights the strong partnership and collaborative efforts between the teams at EFG Holding, contributing to Valu’s impressive growth. Hamdy looks forward to the future prospects of their partnership.

EFG Hermes served as the exclusive financial advisor and transaction manager for this issuance, with EFG Hermes and Arab African International Bank (AAIB) acting as underwriters. AAIB also served as the custodian bank, while Arab Banking Cooperation (ABC) and Al Ahli Bank of Kuwait (ABK) were among the subscribers. Dreny & Partners provided legal advisory services, and Baker Tilly was the transaction’s auditor.

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