Cairo – Mubasher: Ghabbour Auto (GB Auto) on Sunday announced that its subsidiary GB Leasing has issued its first securitisation bonds of EGP 355 million.

Egypt's largest car assembler and distributor will use the bond proceeds to cut its debt and reinforce its financial position, as well as create new credit limits for banks to work on future growth plans, GB Auto highlighted in a filing to the Egyptian Exchange (EGX).

The bond issuance process will be executed over three tranches with maturities that range between 13, 36, and 60 months, the Egyptian company added, pointing out that the three tranches were rated AA +, AA and A, respectively, by Middle East Credit Rating and Investors Service (MERIS).

Al-Rehab Company for Securitisation will issue the bonds, while Arab African International Bank (AAIB) and Commercial International Bank (CIB) - Egypt will manage and promote the issue.

The AAIB and Banque Misr will cover the initial public offering (IPO) and Zulficar & Partners Law Firm will be the legal advisor, GB Auto noted.