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Tuesday, 14 September 2021

Valu kicks off EGP 2 bn securitization program + Fawry eyes consumer finance space

EFG Hermes’ consumer finance subsidiary Valu has kicked off its EGP 2 bn securitization program with a EGP 323 mn bond issuance, according to a statement (pdf) yesterday from the financial services corporation, whose advisory arm managed the issuance. The security is backed by a EGP 369 mn receivable portfolio, and was given an investment-grade prime-1 rating by Middle East Rating Services, the statement read.

Valu isn’t the only EFG subsidiary selling asset-backed securities: Its factoring and leasing arm, EFG Hermes Corp-Solutions, is also planning to take an EGP 300 mn issuance to market later this year.

Egypt’s securitization market has been on a roll these past few months: With Raya subsidiary Aman completing the issuance of EGP 585 mn in securitized bonds, while upmarket developer SODIC closed an EGP 343 mn securitized bond sale and financial leasing company EgyLease recently revealing that it is working to issue EGP 750 mn in securitized bonds.

Advisors: EFG Hermes acted as the sole financial advisor, transaction manager, book-runner, underwriter, and arranger on the issuance. Dreny & Partners acted as legal advisor and KPMG was the auditor of the transaction. Suez Canal Bank and AAIB acted as underwriters and AAIB acted as custodian.


In other NBFS news:

  • Fawry will launch a consumer finance company with EGP 10 mn in capital, it announced in an EGX filing (pdf) yesterday after its board green-lit the decision. The company will be fully owned by Fawry, which will contribute EGP 7.5 mn of the start-up capital, while subsidiary Fawry Microfinance will provide the remainder.
  • Contact now has the right to promote and cover issuances of securities under amendments approved by its general assembly, according to an EGX disclosure (pdf).

OTHER DEBT NEWS- OIH takes out loan for Pyramids sound and light show: Orascom Investment Holding (OIH) will borrow EGP 311 mn from the National Bank of Egypt (NBE) over a nine-year term to improve the Giza Pyramids’ sound and light show, the state-owned bank said in a statement (pdf) yesterday. The company has estimated the project will cost EGP 350 mn in total, the remainder of which will be self-financed.

More sound, more light: The project, part of the company’s larger development plan to revamp the area around the Giza Pyramids, involves installing new equipment to modernize and improve the 40-year-old landmark spectacle, as well as build office spaces for its workers and open restaurants and retail outlets.

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