EFG Hermes, the leading investment bank franchise in Frontier and Emerging Markets (FEM), announced today that its the investment banking division successfully closed valU’s — the MENA region’s leading Buy-Now, Pay-Later (BNPL) lifestyle-enabling fintech platform — third securitized bond issuance worth EGP 854.5 million, which comes as part of a wider EGP 2.0 billion program that was approved by the FRA in July 2021.
The bond is backed by a receivables portfolio, assigned to EFG Hermes Holding’s Financial Group for Securitization, the issuance’s Special Purpose Vehicle (SPV). It is comprised of a single tranche, with a Prime 1 (sf) rating and a tenor of 12 months.
Commenting on the issuance, Maie Hamdy, Managing Director – Debt Capital Markets at EFG Hermes said, “We are pleased to be part of yet another successful issuance for valU and to support the leading BNPL fintech player in expanding its operations and broadening its capacities in the ever-growing Egyptian fintech ecosystem. The significant traction garnered from all three issuances, which initially hit the market as the first-of-their-kind for a BNPL fintech platform, underlines the trust we have built in the market and our unwavering commitment to provide our partners and clients with value-generating and diverse financing solutions that best serve their business expansion objectives.”
Shokry Bidair, CFO of valU also commented on the issuance saying, “We are incredibly proud to have the support of EFG Hermes as we look to alternative financing methods that enable us to enhance our liquidity position, and execute our growth plans. As valU continues to expand its operational footprint and merchant network across key products, sectors, and markets, this issuance comes at the perfect time, supporting us to cater to the growing demand for convenient consumer financing solutions in the region.”
The deal comes on the heels of the Firm’s successful conclusions of the first future flow securitized bond offering worth EGP 800 million for CIRA Education, and the third issuance worth EGP 292.5 million for Pioneers Properties for Urban Development. It also follows the Firm’s successful advisory on the second issuance for EFG Hermes Corp-Solutions valued at EGP 2.0 billion, and valU’s second securitized bond offering, worth EGP 532.6 million.
EFG Hermes acted as sole financial advisor, sole transaction manager and book-runner, underwriter, and arranger on the issuance, with Commercial International Bank (CIB) and National Bank of Egypt (NBE) acting as underwriters while aiBANK acted as a subscriber.
