Cairo: Drive Finance, a non-banking financial company specialized in consumer finance and a subsidiary of GB Capital, the financial services arm of GB Corp, has successfully completed its sixth securitization bond issuance, valued at EGP 2.4 billion. This issuance marks the first tranche under Drive’s EGP 25 billion securitization program, executed with the support of its sister company, Capital for Securitization.

Ahmed Ossama, Managing Director of Drive Finance, expressed his satisfaction with the strong investor demand for this issuance, noting that the subscription volume exceeded twice the issuance amount. He stated, “The significant investor interest reflects the strong confidence in the company and demonstrates our ability to maintain creditworthiness and achieve success amid a challenging economic environment.”

Remon Gaber, Head of Treasury at Drive Finance, also expressed pride in the issuance’s success, emphasizing that the continued diversification of the company’s funding sources has enhanced its capacity to meet its objectives, expand financing services, and increase geographic reach. This expansion has contributed to growing the company’s market share in consumer finance and factoring activities.

The issuance was comprised of three tranches:

  • Tranche A: Amounted to EGP 844 million with a 12-month maturity and received a “P1” (sf) credit rating.
  • Tranche B: Amounted EGP 1.281 billion with a 36-month maturity and received AA(sf) credit rating.
  • Tranche C: Amounted EGP 314 million with a 57-month maturity and received an A(sf) credit rating.

The Commercial International Bank (CIB) and the Arab African International Bank acted as Financial Advisors, Managers, Arrangers, and Underwriters for the issuance. The underwriting syndicate also included Bank Al Baraka. The Arab African International Bank also acted as the Custodian and Placement Agent. Al-Deriny Law Firm served as legal counsel and Baker Tilly acted as the transaction’s auditors. The issuance was rated by the Middle East Rating & Investors Service (MERIS).

About Drive Finance

Drive Finance is a leading company in consumer finance and factoring services for both corporate and individual clients in Egypt. It operates under GB Capital, the financial services arm of GB Corp. Established in 2012, Drive Finance has grown its business and market share, securing a prominent position among competitors in the Egyptian auto loan sector.