Egypt: GB Corp’s subsidiary secures $38mln joint financing

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Cairo – Ghabbour Egypt, a subsidiary of GB Corp, obtained a medium-term financing facility amounting to EGP 1.2- billion, according to a press release.

The entity secured the joint facility from a consortium led by Banque Misr, FISBC Egypt, and Arab Investment Bank to establish an automotive assembly plant in Sadat City.

The project aligns with the national strategy to back local production and enhance the domestic component of the automotive industry.

This joint financing covers 60% of the total expected investment of nearly EGP 1.90 billion. The Sadat plant aims to boost the production capacity of Ghabbour Egypt and is anticipated to reach an annual production capacity of 50,000 vehicles.

Accordingly, the local production capacity across GB Corp's factories might exceed 100,000 vehicles annually, including passenger cars, microbuses, and various types of vehicles.

Nader Ghabbour, CEO of GB Corp, commented: “We believe that the establishment of our Sadat City plant will enable the company to better serve the Egyptian market by providing high-quality locally assembled vehicles at competitive prices, catering to diverse consumer segments.”

“This will significantly reduce our reliance on imports by increasing the portion of locally produced vehicles and components, and therefore contributing substantially to alleviating pressure on hard currency,” Ghabbour added.

In the first nine months (9M) of 2023, GB Corp posted consolidated net profits after tax valued at EGP 1.35 billion, an annual drop from EGP 1.74 billion, including minority interest.

Source:Mubasher