Drive Finance, a subsidiary of GB Capital and part of the financial division of GB Corp, has completed its fifth securitized bond issue worth EGP 1.4 billion. This is the second issuance under the Fifth Program of Capital Securitization, which targets a total of 5 billion Egyptian pounds.
Following its previous publication in December, this latest development highlights the company's portfolio growth and investor confidence.
Drive Finance Managing Director Ahmed Osama welcomed the solid response from investors, noting that the interest was more than double the issue amount. “This enthusiasm underscores our strong market position and sustained creditworthiness amidst economic challenges,” he said.
Lemon Gaber, Drive Finance's head of finance, was proud of the issuance's success, attributing it to strategic diversification of funding sources. This approach strengthened the company's goals, expanding its financial services and expanding its market presence, thereby increasing its share in the consumer lending and factoring sectors.
The issuance consists of three tranches.
- first tranche: 546.8 million Egyptian pounds, 13 months, rated AA+(sf).
- 2nd tranche: 644.9 million Egyptian pounds, 36 months, rated AA(sf).
- 3rd tranche: 210.3 million Egyptian pounds, 58 months, rated A(sf).
Commercial International Bank (CIB) played a central role as financial advisor, manager, arranger and promoter. Arab African International Bank acted as custodian, underwriter, and subscription handler. Legal advice was provided by El Delini Law Firm and Sheriff Mansour Dabas Russell Bedford conducted the audit. Middle East Rating Investors Service (MERIS) assigned the rating.
