Valu completes first corporate bond issuance worth EGP 1B

U Consumer Finance (Valu) has completed its first-ever corporate bond issuance, with a total value of EGP 1 billion, according to a press release.

The issuance is the first under Valu's EGP 10 billion corporate bond program, marking a key milestone in its strategy to diversify its funding base and expand access to financing channels that support its long-term growth.

Holding a maximum tenor of 36 months, the bond is structured into two tranches, both carrying an entity credit rating of A-.

Tranche A, valued at EGP 460 million, carries a 13-month tenor and a fixed interest rate, while the second tranche, worth EGP 540 million, has a 36-month tenor and a variable interest rate.

Over the past 12 months, the company increased its available revolving banking facilities by EGP 16 billion to EGP 25 billion as of July 2026.

Valu also expanded its access to international development financing, including securing its first financing facility from the European Bank for Reconstruction and Development (EBRD).

Moreover, the company secured $14 million in credit facilities in Jordan since the beginning of 2026, further diversifying its sources of funding across local and international markets.

Commenting on the transaction, Karim Riad, CFO at Valu, said: “Our inaugural corporate bond issuance adds another important channel to this diversified funding base, complementing our existing relationships with banks and international financial institutions. This breadth of funding sources gives us greater flexibility to support Valu’s growth while maintaining a disciplined approach to liquidity and funding.”

Mahmoud Hamdy, Senior Director of Corporate Finance and Treasury at Valu, indicated: “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 added: “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.”

EFG Hermes, an EFG Holding company, acted as the sole financial advisor, sole transaction manager, bookrunner, underwriter, and arranger on the transaction. Matouk Bassiouny & Hennawy acted as legal advisor, while Baker Tilly served as auditor.

Earlier this month, the EGX-listed company launched the first issuance under its EGP 1 billion bond program, comprising two tranches with maturities of 13 months and 36 months.