ValU is gearing up for its second securitization program: EFG Hermes’ buy-now-pay-later platform valU is studying a new EGP 5 bn securitization program which it hopes to start later this year, CEO Walid Hassouna told us.

The company has almost finished its first program: The consumer finance player has sold more than EGP 1.7 bn worth of securitized bonds in an EGP 2 bn program started in 2021. The company will take to market the remaining EGP 290 mn later this year, Hassouna said, without disclosing a timeframe.

A big year ahead: valU is looking to raise EGP 4.5 bn from securitized bond issuances this year, Hassouna said. The company wants to issue EGP 1.1 bn worth of securitized bonds during 1Q 2023, to be followed by three more issuances of around EGP 1.1 bn before the end of the year. Hassouna’s comments were originally reported by Al Shorouk.

Advisors: EFG Hermes will act as sole financial advisor, transaction manager, and arranger on the upcoming issuances.

2022 was a bumper year for the local securitization market: Companies raised EGP 45.4 bn from securitized bond issuances in 2022, almost three times the EGP 15.8 bn sold the year prior, according to data tracked by Enterprise. So far in 2023, almost EGP 1 bn worth of bonds have been sold.