Egypt’s Valu Completes EGP 1 Billion First Corporate Bond Issuance

CAIRO (XOL Africa) — Egypt’s Valu has completed its first corporate bond issuance, raising 1 billion Egyptian pounds ($21.3 million) as the financial technology company expands its funding sources across banks, international financial institutions and the country’s debt capital markets.

The issuance is the first under Valu’s 10 billion-pound corporate bond program and forms part of a broader strategy to diversify funding and support the company’s growth.

EFG Hermes, the investment banking arm of EFG Holding, acted as sole financial adviser, transaction manager, bookrunner, underwriter and arranger.

The bonds have a maximum maturity of 36 months and carry an A- entity credit rating. The issuance comprises a 460 million-pound tranche with a 13-month maturity and fixed interest rate, and a 540 million-pound tranche with a 36-month maturity and variable interest rate.

“Valu’s funding strategy has always been centered on diversification, flexibility, and building sustainable access to capital,” Karim Riad, chief financial officer at Valu, said.

“Over the past 12 months, we have continued to strengthen our banking facilities while expanding our access to international and capital market funding,” Riad said. “Our inaugural corporate bond issuance adds another important channel to this diversified funding base.”

Valu has increased its available revolving banking facilities by 16 billion pounds over the past 12 months to 25 billion pounds as of July 2026. The company has also secured financing from international development institutions, including its first financing facility from the European Bank for Reconstruction and Development.

The company said it also secured $14 million in credit facilities in Jordan since the beginning of the year, further broadening its access to financing.

Mahmoud Hamdy, senior director of corporate finance and treasury at Valu, said the bond issuance demonstrated the company’s ability to draw on multiple sources of capital.

“We have deliberately built a funding model that draws on multiple sources of capital, from bank facilities and international financial institutions to the Egyptian debt capital markets,” Hamdy said.

“The successful completion of this issuance demonstrates our ability to access these channels effectively and positions us to continue expanding our funding ecosystem in line with the scale and ambition of Valu’s business,” he said.

Maie Hamdy, managing director of debt capital markets at EFG Hermes, said the transaction highlighted the depth of Egypt’s debt capital markets.

“EFG Hermes is pleased to have supported Valu in completing its inaugural corporate bond issuance and the first issuance under its EGP 10 billion program,” she said.

“This transaction represents an important milestone for Valu and demonstrates the continued depth and resilience of Egypt’s debt capital markets,” Hamdy said.

Matouk Bassiouny & Hennawy acted as legal adviser, while Baker Tilly served as auditor.

Valu, legally known as U Consumer Finance S.A.E. and listed on the Egyptian Exchange under the ticker VALU.CA, provides consumer finance and other financial technology services in the Middle East and North Africa.

The company pioneered buy-now, pay-later services in the MENA region and offers financing plans of up to 60 months across more than 9,000 stores and online platforms. Its products cover categories including electronics, home appliances, furniture, health care, education, travel and fashion.

Valu also provides investment products, business-to-business financial solutions, payment cards and financing for high-value purchases. The company launched its services in Jordan in May 2026 under a Specialized Finance license after receiving final approval from the Central Bank of Jordan.

EFG Holding, which owns EFG Hermes, operates investment banking, nonbank financial services and commercial banking businesses across several markets in the Middle East.

The transaction adds Egypt’s corporate bond market to Valu’s existing funding channels as the company seeks to maintain a diversified capital structure and finance its expansion.