EFG Hermes announces the completion of the second issuance with a value of 532.6 million pounds as part of the program to issue securitized bonds in favor of “Valeo”

This deal follows the success of the first issue in September last year worth EGP 322.5 million for Valeo, the first of its kind for a buy-now, pay-as-you-go (BNPL) financial services technology platform.

Cairo: EFG Hermes announced today that the Debt Markets Division of the Underwriting and Promotion Department of the leading emerging and frontier market investment bank has successfully completed the second issuance of securitized bonds for its subsidiary Valeo, valued at EGP 532.6 million, as part of An EGP 2 billion. securitization bond issuance program. On July 25, 2021, the company obtained the approval of the Financial Supervisory Authority to move forward with the implementation of the program.

It is noteworthy that the securitization bonds are secured by a portfolio of notes receivable with a value of 609.1 million Egyptian pounds. The securitization process was assigned to EFG Hermes as the securitization company, and the issue has a credit rating of (Prime-1 ) received. ) of the Middle East Credit Rating Corporation (MERIS), which is the strongest rating. Creditworthiness obtained through the process of issuing bonds in the Egyptian market, taking into account that the issuance will be in two tranches with terms of 12 months, with the value of the first part amounting to 479.34 million pounds and 53.26 million pounds for the second part.

In this context, Mai Hamdi, Executive Director of the Debt Markets Department in the Promotion and Underwriting Sector at EFG Hermes, expressed her pride at the completion of the second securitization transaction for VALEO, following the success of the previous issue, which was the first issue of its kind for a financial services technology platform working in the area of ​​procurement. Now and Pay Later (BNPL), noting that this release will enhance the company’s ability to provide innovative solutions for its installment plans and programs. Hamdi emphasized that the company’s success in completing many similar transactions is a clear proof of the effectiveness of the team’s work in the debt settlement and issuance markets sector and their zeal to meet clients’ needs by providing solutions which suits various economic and financial conditions. Hamdi concluded that the company looks forward to providing the best solutions and innovative alternatives in the field of corporate finance to meet the aspirations of clients and face the fluctuations of the market, through a package of integrated products and services provided by the team, which includes a selection of the most effective expertise and skills.

Valeo Chief Financial Officer Shukri Bedeir, for his part, expressed his happiness at the completion of the second issuance of a securitization bond program worth EGP 2 billion. The success of that issuance is a testament to the strength of the business model unique to the company, in addition to our ability to take advantage of the market for arranging and issuing debt despite the economic challenges in the arena, which emphasized that this transaction will improve the company’s financial position and support the growth plans that the company strives to continue to implement.

It is noteworthy that EFG Hermes acted as the sole financial advisor and sole manager of the issue, as well as the sole regulator, promoter and underwriter of the issue. The Arab African International Bank also acted as the underwriter and custodian for the transaction, Dreny & Partners acted as the legal advisor for the transaction, and KPMG acted as the financial auditor of the issue.

This transaction follows the success of EFG Hermes in completing a set of transactions in 2022, such as the provision of advisory services and the completion of the second issuance of securitization bonds for the “Pioneers Properties for Urban Development” group of companies, and the completion of the first securitization bonds for the “Bidaya” real estate finance company and the “Madina” company Nasr Housing and Development, in addition to the completion of the sixth issuance within the program of securitization bonds issuance for Premium International, as well as the company’s success in completing the first issue of securitization bonds for its subsidiary Valeo worth 322.5 million pounds in September 2021.

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About EFG Hermes Holding

EFG Hermes Holdings (HRHO.CA Code: EGX; EFGD: LSE) has a direct presence in 13 countries across four continents, as the company originated in the Egyptian market and has expanded over 38 years of continuous performance to transform from an investment bank in the Middle East region only after a Comprehensive bank in Egypt and the leading investment bank in emerging and frontier markets. The company has a professional team capable of providing a unique package of financial and investment services, ranging from promotion, underwriting, asset management, stock broking, research and direct investment in emerging and frontier markets. In the Egyptian market, the company has a leading platform in non-bank financial services, covering various activities, including microfinance, financial leasing and factoring, as well as buy now and pay later (BNPL), real estate financing and insurance.

With its recent acquisition of a majority stake in aiBANK, it has also enabled the company to offer banking products and services.

The three business sectors, Investment Bank, Non-Bank Finance and Commercial Bank, have contributed to consolidating the leading position unique to the company and improving its ability to launch more financial products and services, contributing to the providing a comprehensive package of services to meet the needs of its customers, individuals and companies of all sizes, and access to new customers.

We are proud to be in: Egypt | United Arab Emirates | Saudi Arabia | Kuwait | Amman | Jordan | Pakistan | United Kingdom | Kenya | USA | Bangladesh | Nigeria | Vietnam

About Valeo

Value, the leading Buy Now Pay Later (BNPL) platform launched in 2017 to enhance the evolving lifestyle using financial services technology, is a subsidiary of EFG Hermes Holdings’ non-banking finance division. The company has a direct presence as a payment service in more than 5,000 sales points and more than 330 websites. It provides easy installment plans and programs up to 60 months for home appliances, electronics, furniture, home finishing, solar solutions for residential units, travel, tourism, educational and health services, among others. Value is unique in providing the fastest credit approvals in Egypt, connecting consumers with a wide base of retail stores, online shopping sites and a large network of different service providers.

For more information please contact:

Media Relations Division of EFG Hermes Holdings

PublicRelations@EFG-Hermes.com

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Head of Marketing and Communications at EFG Hermes Holding melgammal@efg-hermes.com

Dismissal

EFG Hermes Holdings may have referred to future matters in this statement, including, for example, management’s expectations, strategy, objectives, growth opportunities and future indicators for various activities. These forward-looking statements are not considered to be actual facts, but rather express the group’s vision for the future, and many of these expectations, by their nature, are uncertain and beyond the company’s control, and they include – for example, but not limited to – fluctuations in the financial markets and the actions taken by current and potential competitors and the general economic conditions and effects arising from the local currency position and current and future legislation and various regulations. Accordingly, the reader should be careful not to place undue reliance on forward-looking statements that are correct as of the date of publication.

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