Ghabbour Auto, an automotive company in the Middle East and non-bank financial services provider in Egypt, announced today that its subsidiary Drive Finance has completed its first bond issuance in the amount of LE 700 million.
Proceeds from the transaction will be used to deleverage Drive’s balance sheet and unlock further opportunities for growth.
Drive Finance’s, Ghabbour Auto subsidiary, first issue will be worth 700 million pounds, divided into two tranches with tenors of 13 and 60 months, respectively. The structure of the process are as follows: The first tranche consists of a LE 300 million, 13-month non-callable bond and not convertible into shares with a fixed coupon rate of 14.0 % payable monthly. The second tranche consists of a LE 400 million, 60-month callable bond not convertible into shares with a fixed coupon rate of 13.5% payable monthly.
“This transaction marks a major milestone for Drive, the first consumer finance company to issue bonds which confirms that the company is on the right track and is well-positioned to unlock future growth. The current macroeconomic environment poses many challenges and brings a wave of uncertainty; however, in issuing its first bond, Drive has proven its ability to successfully adapt to shifting dynamics and propel the company forward,” said Drive Finance Managing Director Ahmed Ossama.
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