valU closes EGP 922 mn securitized bond issuance

September 19, 2023

valU issues EGP 922.3 mn worth of securitized bonds: Fintech platform valU has issued EGP 922.3 mn worth of securitized bonds, according to a statement (pdf). The single-tranche issuance has a 12-month tenor and a Prime 1 rating, according to the statement.

The issuance renews a short term, EGP 4 bn securitization program that kicked off in November 2022. The most recent issuance in the program was for EGP 856.5 mn of bonds in March of this year. valU has now made six securitizations in total, including three this year alone.

Who subscribed? Arab Banking Corporation (ABC), aiBank, Attijariwafa Bank, and Banque Misr were subscribers to the issuance. EFG Hermes and Arab African International Bank (AAIB) were underwriters.

Advisors: EFG Hermes acted as the sole financial advisor and sole transaction manager, and was joined by AAIB as lead arrangers and book-runners. AAIB also acted as the custodian bank on the issuance. KPMG was the financial auditor and ALC-Alieldean Weshahi & Partners acted as the legal advisor.

DATA POINT- This brings the total value of securitized bonds issued in Egypt so far this year to more than EGP 51.7 bn — almost 14% more than total volumes across the whole of 2022, according to data tracked by Enterprise.

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