GB Auto’s car finance arm Drive Finance has closed its first EGP 700 mn corporate bond issuance as part of a wider EGP 2 bn program, according to a press release (pdf).

Where the money’s going: The proceeds will be used to “deleverage Drive’s balance sheet” and unlock further chances for growth, the release read. The issuance is designed to diversify Drive’s sources of funding, Marina Kamal, investor relations head at GB Auto, told Enterprise.

Further down the road: Drive expects to go ahead with the rest of the program over the next two years, Kamal told us.

About Drive: A subsidiary of GB Auto’s financing arm, GB Capital, Drive offers factoring and car loans to individuals and companies. The company landed a consumer finance license in 2021.

Advisers: CIB was the sole arranger and adviser for the issuance. Dreny and Partners acted as the legal advisor, and Change Consultants audited the issuance, Kamal told Enterprise.

EDITOR’S NOTE- Corrected on 26 June, 2022

An earlier version of this story incorrectly stated that the program is for securitized bonds. Drive’s program is for regular corporate bonds. The story has also been updated to reflect that CIB was the sole arranger and adviser for the issuance.