By: Heba El-Kordy

Cairo – Mubasher: Ghabbour Auto (GB Auto) has not received yet the Egyptian Financial Regulatory Authority's (FRA) final approval concerning offering securitised bonds for its subsidiary Drive Finance, the company’s associate vice president for investor relations, Andre Valavanis, said.

GB Auto is expected to finalise the issuance of securitised bonds before the end of 2019, Valavanis told Mubasher.

The securitised bonds which will be issued for Drive Finance are still under consideration and the value has not been determined yet, he noted.

GB Auto has only received an in-principle approval from Egypt’s FRA, he added.

Valavanis denied news reports about selecting the Commercial International Bank (CIB) and Arab African International Bank (AAIB) to issue bonds worth EGP 400 million, affirming that the matter is still under consideration and no banks have been chosen yet.

The bond securitisation plan aims to support the company’s financial position and future growth, he remarked.

It is noteworthy that GB Auto holds a 90% stake in Drive Finance. 

During the first half of 2019, GB Auto’s profit retreated to EGP 113.48 million from EGP 255.6 million in H1-18.