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Sunday, 22 August 2021

Valu plans maiden securitized bond offering

Valu is getting into securitization: EFG Hermes subsidiary Valu is planning a maiden securitized bond issuance worth EGP 2 bn, EFG Hermes Finance CEO Walid Hassouna told Al Mal TV (watch, runtime 1:06:43). The consumer finance lender could kick start the program before the end of the year with a EGP 300 mn sale, he said, adding that a final decision has not yet been taken on the size of the initial tranche.

An update from Corp-Solutions: The bank’s factoring arm EFG Hermes Corp-Solutions is also planning to take a EGP 300 mn issuance to market later this year, Hassouna told the newspaper. This is a different figure to the one given earlier this month by Corp-Solutions CEO Talal Elayat, who said that the company could raise EGP 500-700 mn from an issuance expected to take place in 4Q2021.

The market has been tepid so far this year: SODIC, Palm Hills Development, Premium International and Arabia Investments Holding subsidiary Rawaj have been the only companies to sell asset-backed securities to investors, worth around EGP 2 bn.

But more companies are preparing for securitized bond offerings: Upmarket developer SODIC, Contact Financial Holding, Edge Holding, Raya’s Aman, Tamweel Holdings and NUCA’s Al Taamir for Securitization have all reportedly planned to securitize parts of their portfolios in the coming months. The FRA said late last year that five companies would issue bonds worth EGP 9.3 bn in the near future.

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