ALC advises on Valu’s EGP 953.1M Bond Issuance 

Alieldean Weshahy & Partners (‘ALC‘) assumes the role of legal advisor for Valu’s latest achievement – the closure of a substantial EGP 953.1 million securitized bond offering. This accomplishment is a strategic progression within Valu’s ambitious EGP 9.0 billion program, reflecting its commitment to financial expansion. Valu, a powerhouse in the MENA financial technology landscape, concludes its seventh securitized bond issuance with this latest move. 

The bond issuance is backed by a receivables portfolio assigned to EFG for Securitization, acting as the issuance’s special purpose vehicle (SPV). With a total value of EGP 1.4 billion, the bond is issued in four tranches (A, B, C & D), each with distinct tenors and ratings. Tranche (A), valued at EGP 419.4 million, has a 6-month tenor and a P1(sf) rating. Tranche (B), valued at EGP 209.7 million, shares the same tenor and rating. Tranches (C) and (D), valued at EGP 209.7 million and EGP 114.4 million, respectively, both have a 12-month tenor and a P1(sf) rating. 

This successful venture marks a notable milestone in Valu’s remarkable evolution from a pioneering Buy-Now-Pay-Later (BNPL) platform to a comprehensive financial technology leader. Valu continues to enrich the lives of millions in Egypt through U, its BNPL platform, and a diverse array of investment products, including the AZ Valu fund and EFG Hermes ONE. Additionally, Valu offers instant cash redemption programs such as Sha2labaz and Akeed, a convenient savings solution, and Ulter, a financing program for high-value purchases up to EGP 15 million in the luxury space. 

The Alieldean Weshahi & Partners team was headed by Managing Partner Bahaa Alieldean (pictured), alongside Partner Mahmoud El Araby, Senior Associate Ahmed Shehab and Junior Associates Mohamed Gamal and Loay Khaled.

EFG Hermes, an EFG Holding company, acted as the sole financial advisor, transaction manager, book-runner, and arranger for this securitized bond offering. The Arab African International Bank (AAIB) joins as underwriters and custodian bank, while Baker Tilly serves as the auditor. Subscribers to the issuance include the Arab Banking Cooperation (ABC), aiBANK, and Al Ahli Bank of Kuwait (ABK).