Cairo – Mubasher: Drive Finance, a subsidiary of Ghabbour Auto (BG Auto), has completed the first bond offering which is part of a programme standing at EGP 2 billion on 23 June this year.

GB Auto elaborated that the bond issue amounted to EGP 700 million through two tranches, with the proceeds to be used in deleverage of Drive’s balance sheet and growth endorsement, according to a bourse disclosure on Sunday.

The first offering totalled EGP 300 million in value, holding a 13-month duration period and a monthly fixed coupon rate of 14%. The type of the bond is non-callable and not convertible into shares.

Meanwhile, the second issue was worth EGP 400 million of callable not convertible into shares bond type, carrying a tenor of 60 months and a monthly fixed coupon rate of 13.5%.

It is worth noting that the wholly-owned subsidiary Drive received in 2021 the Egyptian Financial Regulatory Authority’s (FRA) approval for its licence.