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Thursday, 18 August 2022

valU closes its second securitized bond issuance

valU just closed its second securitized bond issuance in less than a year: EFG Hermes’ consumer finance arm valU has issued EGP 532.6 mn of securitized bonds, according to a statement (pdf) by our friends at EFG Hermes.

About the issuance: The two 12-month tranches are backed by an EGP 609.1 mn receivables portfolio and hold a Prime-1 rating from Middle East Rating Services (MERIS), the statement said.

Almost halfway to the EGP 2 bn target: The issuance is the second in the consumer finance firm’s EGP 2 bn maiden securitization program, which it kicked off last year with an EGP 323 mn bond issuance.

Advisors: EFG Hermes acted as the sole financial advisor, sole transaction manager, book-runner, underwriter, and arranger on the issuance, according to the statement. Arab African International Bank (AAIB) was underwriter and custodian, while Dreny & Partners acted as counsel and KPMG as auditor.

BY OUR COUNT- This issuance takes Egypt’s securitization volume so far in 2022 to around EGP 17.1 bn, according to data tracked by Enterprise. That’s more than 8% ahead of the EGP 15.8 bn taken to market during the whole of 2021.

AND THERE’S MORE COMING: NUCA’s record-breaking issuance has the FRA’s blessing: The Financial Regulatory Authority (FRA) has given approval to the New Urban Communities Authority to go ahead with its EGP 20 bn in issuance, it said in a statement (pdf) yesterday. The issuance is double the size of the largest securitization in the history of the market, also issued by NUCA back in 2020. The authority hopes to take the issuance to market by late August or early September, Imane Raouf, partner at legal advisor Dreny & Partners, previously told Enterprise.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

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