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Wednesday, 15 September 2021

Suez Canal Bank and AAIB submit offers for 90% of Valu’s maiden securitized bond issuance

Two banks want almost all of Valu’s securitized bond issuance: The Suez Canal Bank and the Arab African International Bank (AAIB) are looking to snap up almost 90% of the EGP 323 mn maiden securitized bond issuance by EFG Hermes’ consumer finance arm Valu, Suez Canal Bank Chairman Hussein Rifai told us yesterday. The two banks submitted offers worth EGP 145 mn each.

Earlier this week, Valu kicked off its EGP 2 bn securitization program with a EGP 323 mn bond issuance, which was given an investment-grade prime-1 rating by Middle East Rating Services. The two banks acted as underwriters on the issuance and AAIB acted as custodian. This issuance received “significant interest” from financial providers, Mostafa Gad, co-head of investment banking at EFG Hermes said (pdf).


The AAIB has signed a medium-term financing agreement worth EGP 1.3 bn with Sky Investments and Misr Real Estate Assets Management to complete the Park St. restaurant and retail development in Sheikh Zayed, according to a statement (pdf). AAIB acted as the lead arranger, underwriter and account bank in the agreement, while its subsidiary Arab African International Leasing acted as the guarantor.

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