Cairo – Mubasher: Ghabbour Auto (GB Auto) said that its subsidiary GB Lease concluded its fourth securitised bond offering at a value of EGP 2.041 billion.
“Proceeds from the transaction will be used to deleverage GB Lease’s balance sheet to improve its liquidity position, create new borrowing limits with lender banks, and support the company’s future growth plans,” GB Auto said in a bourse disclosure on Sunday.
The offering includes three tranches of bonds with maturities of 13, 37, and 60 months, which are rated at AA+, AA, and A, respectively, by Middle East Rating & Investors Service (MERIS).
The 13-month non-callable bond is valued at EGP 236 million and carries a variable yield of 15 basis points (bps) over the lending corridor of 9.25%, while the 37-month callable bond is worth EGP 925 million with a variable yield of 30 bps over the lending corridor.
Moreover, the 60-month callable bond, valued at EGP 880 million, has a variable return of 60 bps over the lending corridor.
During the first nine months of 2020, GB Auto achieved net profits of EGP 794.77 million, up from EGP 174.07 million in the same period in 2019, including minority shareholders’ rights.
