Drive Finance raises EGP 1.5bn through bond issuance

Drive Finance, a subsidiary of GB Capital and the non-bank financial services arm of GB Corp, has completed an EGP 1.5bn bond issuance with a maturity of 13 months. The company announced the successful completion of the issuance, which is a key pillar of its strategy to diversify funding sources and strengthen its capital structure. This move aims to sustain expansion across core operations, particularly in consumer finance and factoring.

The bond issuance is part of Drive Finance’s strategy to strengthen its funding capabilities and support sustainable growth plans. Ahmed Ossama, Managing Director of Drive Finance, highlighted the importance of this milestone, stating that leveraging capital market instruments enhances the company’s financial flexibility and ability to meet evolving customer needs. This development demonstrates the company’s commitment to growth and customer satisfaction.

Despite broader macroeconomic challenges, the transaction underscores Drive Finance’s financial standing and market position. Remon Gaber, Head of Treasury at Drive Finance, emphasized that completing the issuance amid current economic developments and geopolitical pressures demonstrates the company’s financial strength and creditworthiness. Drive Finance boasts an ‘A-’ credit rating, a testament to its financial stability.

The bond issuance involved several financial and legal advisers. CI Capital acted as issuance manager and promoter, while Matouk Bassiouny & Hennawy served as legal counsel. Middle East Rating and Investors Service (MERIS) provided the credit rating assessment, and Baker Tilly acted as the independent auditor. The involvement of these reputable firms adds credibility to the transaction.

Drive Finance’s successful bond issuance is a significant achievement, especially considering the current economic climate. The company’s ability to secure EGP 1.5bn in funding demonstrates its appeal to investors and its potential for growth. This development is expected to have a positive impact on the company’s operations and customer base.

The EGP 1.5bn bond issuance will likely support Drive Finance’s expansion plans in consumer finance and factoring. By diversifying its funding sources and strengthening its capital structure, the company is well-positioned for sustainable growth. Drive Finance’s commitment to meeting evolving customer needs and its focus on financial flexibility will be key to its future success.

Drive Finance’s bond issuance is a notable achievement in the Egyptian financial market. The company’s financial strength, creditworthiness, and growth potential have been recognized by investors and rating agencies. As Drive Finance continues to expand its operations, it is likely to play a significant role in Egypt’s financial sector.

Key points

• Drive Finance completes EGP 1.5bn bond issuance with 13-month maturity to fund expansion.