EFG Hermes, the investment bank franchise specializing in Frontier and Emerging Markets (FEM), has successfully concluded its advisory role in valU’s fourth securitized bond issuance, valued at EGP 856.5 million. The transaction is part of a broader EGP 4.0 billion program and will allow the fintech platform to expand its offerings in consumer finance and fintech solutions. The bond, which is supported by a receivables portfolio assigned to EFG Hermes for Securitization, has a Prime 1 (sf1) rating and a 12-month tenor.
This marks one of several successful debt capital market transactions that EFG Hermes’ investment banking division has recently advised on, including Bedaya Mortgage Finance’s second issuance, PHD’s EGP 638 million securitization issuance, MNHD’s second issuance, Al Taamir Mortgage Finance – Al Oula’s first issuance, Misr Italia Properties’ second issuance, and CIRA Education’s first future flow securitized bond offering.
ALC- Alieldean Weshahi & Partners has advised valU in the transaction. The advising team was led by ALC’s managing partner Bahaa Alieldean (pictured), alongside partner Mahmoud Elaraby, associates Mahmoud Elgazzar, Ahmed Ali and Omar Sherif, with junior associates Mohamed Gamal and Nour Sabry.
EFG Hermes acted as the sole financial advisor, transaction manager, book-runner, underwriter, and arranger for the issuance, with AAIB as an underwriter and custodian bank, and ABC and aiBANK as subscribers. KPMG served as the auditor and Arab Legal Consultants as the legal advisor. This successful transaction highlights EFG Hermes’ expertise and experience in the financial sector.