Arab Finance: U Consumer Finance, known as valU, has received regulatory approval from the Financial Regulatory Authority (FRA) for a securitization bond program worth EGP 10 billion.
The FRA’s board granted the license to EFG Securitization, valU’s financial advisor, to proceed with the seventh securitization program.
The bonds will be issued against valU’s future financial rights portfolios, with a ceiling of EGP 13 billion.
The FRA stated that the program will span two years from the date of approval and is expected to be executed through up to nine issuances.
valU explained that this step aligns with its strategy to diversify funding sources, noting that securitization remains a key financing tool to support business growth and enhance financial flexibility.
In a related development, valU had previously disclosed that Amazon exercised its right to acquire a 3.95% direct stake in the company’s issued capital.
This move, executed under a May 2022 agreement, highlights the confidence of leading global technology players in Egypt’s digital financial sector.
The agreement granted Amazon the right to purchase $10 million worth of global depository receipts (GDRs) in EFG Hermes Holding, with the option to exchange them for a stake in ValU.
The transaction will be finalized during ValU’s first trading session on the Egyptian Exchange (EGX) at EGP 6.041 per share through a block trading, pending regulatory approvals.
Founded in late 2017, ValU is a leading financial services technology platform in Egypt. It provides a range of innovative solutions aimed at enhancing customer quality of life and advancing financial inclusion.
Its offerings include investment solutions, cashback services, and savings plans across five segments: U, Business, Aqeed, Flip, and Invest.
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