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GB Auto’s Drive Finance closes first bond issuance at EGP 700M

GB Auto’s Drive Finance closes first bond issuance at EGP 700M

Arab Finance: Drive Finance, a subsidiary of GB Auto (AUTO), has concluded its first bond issuance at a value of EGP 700 million, according to a press release filed to the Egyptian Exchange (EGX) on June 26th.

The offering comes as part of a program worth EGP 2 billion, with the first issuance amounting to EGP 700 million.

The first issuance is divided into two tranches; the first tranche is worth EGP 300 million with a tenor of 13 months and a fixed coupon rate of 14% payable monthly, and the second tranche of EGP 400 million with a tenor of 60 month and a fixed coupon rate of 13.5% payable monthly.

Proceeds from the bond issuance will be used to “deleverage” the balance sheet of Drive Finance and consider further opportunities for growth.

GB Auto is an Egypt-based automotive that operates in trading, distributing, and marketing all transportation means, including heavy trucks, semi-trucks, passenger cars, buses, agriculture tractors, and pick-ups.

 

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