Drive Finance returns to the securitization market:GB Corp’s car finance arm Drive Finance has raised EGP 1.47 bn in its second securitized bond issuance this month, according to a statement (pdf) released yesterday by our friends at CIB, who advised, led, and promoted the sale.

The sale: The issuance was 1.7x oversubscribed and is part of the company’s three-year EGP 5 bn program. The bond’s three tranches were rated AA+, AA, and A by the Middle East Ratings and Investors Service (MERIS). This takes the total amount raised from the securitization market by Drive in December to almost EGP 3 bn after it closed a EGP 1.4 bn issuance earlier in the month.

Where the money’s going: The proceeds will help Drive improve its liquidity and support its capital structure, in line with the company’s long-term growth strategy, the statement reads.

The buyers: The Arab African International Bank (AAIB) and Ahli United Bank were underwriters of the issuance. Al Baraka Bank and Bank ABC subscribed to the issuance.

Advisors: CIB acted as financial advisor, transaction lead arranger and promoter, alongside the AAIB as the sale’s custodian. Dreny & Partners was counsel and KPMG served as auditor.

DATA POINT- Companies have raised EGP 80.4 bn from securitization so far this year, up 77% from 2022, according to data tracked by Enterprise.

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