Drive Finance and Non-Banking Services (GB Auto’s subsidiary) announced it has issued a corporate bond of EGP 700m the first issuance of an EGP 2bn programme with Commercial International Bank (CIB), Egypt’s largest private sector bank.
Drive Finance is one of Egypt’s top 5 factoring companies, according to the FRA. Since receiving its license in 3Q12, Drive extends its services to a diversified client base, ranging from business-to-business (SMEs) to business-to-consumer (retail), with a focus on auto finance where the company has managed to receive its Consumer Finance License during 3Q21
Over-subscribed by 1.42X, the issuance carries a 60-month tenor, maturing at mid-2027, and each bond will have a nominal value of EGP 100. The Entity has been rated A- by MERIS (Middle East Rating & Investor Service). The Bond proceeds will be utilized to finance the company’s business activities, in addition to settling part of the existing bank debts.
Commenting on the issuance, Mennan Awadallah, Head of Debt Capital Markets at CIB, said, “This transaction is a landmark transaction being the first corporate bond issuance in the consumer finance sector. CIB is a leader in strengthening and revitalizing the non-bank financial services and the Egyptian Bond Market; we were keen to coordinate this issuance with Drive Finance based on our goal in promoting these markets. We are glad that several funds participated with us in this issuance which is in line with the recent FRA’s direction.
CIB served as sole financial advisor of the transaction, Security Agent, underwriter and placement agent. Dreny & Partners Law Firm served as the legal counsel of the transaction while Change Consultants acted as the issuance auditor.
