Drive Finance raises $50.4m to support lending growth

By Vriti Gothi

Drive Finance has completed its sixth securitisation bond issuance, raising $50.4 million in its first tranche under a broader $525 million securitisation programme. As non-bank financial institutions (NBFIs) in Egypt continue to tap the capital markets to diversify their funding sources amid tighter liquidity conditions, this issuance marks a notable milestone.

Drive Finance, a consumer finance provider and subsidiary of GB Capital, the financial services arm of GB Corp, said the issuance attracted strong investor demand, with subscriptions exceeding twice the offered amount. The transaction was executed with the support of its sister company, Capital for Securitisation.

The latest issuance reflects a broader trend among Egyptian NBFIs to rely more heavily on securitisation as a long-term funding tool, allowing lenders to recycle capital, manage balance sheet risk, and support credit expansion despite macroeconomic pressures and higher interest rates.

Ahmed Ossama, Managing Director of Drive Finance, said, “The oversubscription underscored investor confidence in the company’s credit profile. The significant investor interest reflects the strong confidence in the company and demonstrates our ability to maintain creditworthiness and achieve success amid a challenging economic environment.”

The bonds were structured across three tranches with varying maturities and risk profiles. Tranche A, valued at $17.7 million, carries a 12-month maturity and received a P1(sf) rating. Tranche B amounted to $26.9 million, with a 36-month maturity, and was rated AA(sf), while Tranche C totalled $6.59 million, with a 57-month maturity, and received an A(sf) rating.

Commercial International Bank (CIB) and Arab African International Bank (AAIB) acted as financial advisors, arrangers, managers, and underwriters for the issuance, alongside Bank Al Baraka as part of the underwriting syndicate. AAIB also served as custodian and placement agent. Legal advisory was provided by Al-Deriny Law Firm, while Baker Tilly acted as transaction auditor. The issuance was rated by Middle East Rating & Investors Service (MERIS).

The deal positions Drive Finance to continue scaling its lending activities while reinforcing the role of securitisation as a key funding mechanism within Egypt’s evolving non-bank financial sector.