EFG Hermes has finished issuing securitized bonds worth $13.5 million for Valu
Egypt’s investment bank, EFG Hermes, has finished its 12th bond deal for the financial technology company Valu. The total value of the bonds is $13.5 million (EGP 667.3 million), according to a statement shared on Sunday.
Issuance Details
A subsidiary of EFG Holding Company announced a new securitization program worth $324.5 million (EGP 16 billion).
The bonds are backed by a portfolio of receivables assigned to EFG for securitization. The issuance includes two parts: the first is worth $8.39 million (EGP 413.7 million) and will last for six months, while the second is worth $5.14 million (EGP 253.6 million) and will last for 12 months.
EFG Hermes managed the entire process, acting as the financial advisor, transaction manager, underwriter, and arranger. First Abu Dhabi Bank Misr (FABMISR) was an underwriter, and Arab African International Bank (AAIB) was the custodian. Other investors included Arab Banking Corporation (ABC), Attijariwafa Bank Egypt, and others. Legal advice was provided by Dreny & Partners, and auditing was handled by Baker Tilly.
Maie Hamdy, Managing Director of Debt Capital Markets at EFG Hermes, said the company is committed to supporting projects that drive economic growth and expand the fintech industry, in partnership with Valu.
Financial Performance
EFG Holding’s net profit for the second quarter grew by 95% compared to the same time last year, reaching $16.1 million (EGP 791 million). The group’s revenue also increased by 63%, totaling $103.6 million (EGP 5.1 billion) for the quarter.
This growth was mainly due to strong results from the Investment Banking division and improvements in the group’s other main business areas.
Recent Deals
Last month, EFG Hermes helped sell Helmerich & Payne, Inc.’s entire share in ADNOC Drilling for $197 million through a quick sale process called an accelerated book build (ABB).
EFG Hermes was chosen to lead the global sale to assist Helmerich & Payne in selling its shares in the state-owned drilling company.
In July, EFG Hermes helped Electra Investment Holding, based in the UAE, buy a stake in Elsewedy Electric for $449 million. The month before, EFG Hermes helped with the $11 billion public offering of Saudi Aramco shares on the Saudi Exchange.
Also, in May, EFG Hermes helped ADNOC Drilling in the UAE raise $935 million through an Accelerated Equity Offering (AEO).
Key background
Valu, founded in 2017 and part of EFG Holding Company, is a fintech platform that allows people to buy now and pay later (BNPL). It provides flexible payment plans for up to 60 months at over 6,000 retail locations and 1,500 online stores. Valu also offers investment products, an instant cash redemption program, savings options, and financing to help people buy expensive items.
Published: 18th November 2024
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