Cairo – Mubasher: Ghabbour Auto (GB Auto) announced that its subsidiary Drive Finance has concluded its first securitised bond offering worth EGP 425 million.

Proceeds from the offering will be directed to “deleverage Drive’s balance sheet and unlock further opportunities for growth,” the company said in a statement to the Egyptian Exchange (EGX) on Wednesday.

The first securitisation for a factoring company includes three tranches, with maturities of 13, 26, and 48 months.

The three tranches were rated at AA+, AA, and A, respectively, by Middle East Credit Rating and Investors Service (MERIS).

The first tranche includes a 13-month non-callable bond valued at EGP 187 million with a fixed return of 13.01%.

In addition, the second tranche includes 36-month callable bond worth EGP 200 million with a fixed annual return of 13.81%.

The third tranche include 48-month callable bond valued at EGP 38 million with a fixed annual return of 14.11%.

Capital For Securitization Co. was the issuer of the bond, whereas Commercial International Bank (CIB) and Arab African International Bank (AAIB) were joint lead managers and global coordinators.

CIB also served as bookrunner and underwriter of the transaction, while Dreeny & Partners acted as legal advisor and KPMG was the auditor.

During the first half of 2019, the Egyptian automotive firm logged a net profit of EGP 113.48 million, compared to EGP 255.5 million in H1-18.