GB Corp’s financial unit receives approval to expand into debt capital markets

Timilehin Adejumobi -
Key Points
  • GB Capital secures an underwriting license from Egypt's Financial Regulatory Authority, marking a significant move into debt capital markets to expand financial services.
  • The new license enables GB Capital to offer venture capital investments and support capital raising through securities, aligning with its diversification strategy.
  • GB Corp reported a 78.4% revenue surge, driven by strong performances in both Auto and Capital segments, totaling EGP 19.2 billion in H1 2024.

GB Capital, the financial unit of GB Corp owned by the family of late Egyptian auto tycoon Raouf Ghabbour, has secured a promoting and underwriting license from the Financial Regulatory Authority (FRA). This milestone marks a critical step in the company's strategic move into the debt capital markets, broadening its range of financial activities as it seeks to diversify.

The new license aligns seamlessly with GB Capital’s broader vision of expanding its offerings and solidifying its foothold in Egypt’s financial sector. The firm aims to deliver a comprehensive range of investment and financial services tailored to corporate and institutional clients, thereby positioning itself as a formidable player in the marketplace.

Unlocking new opportunities

While GB Capital is not positioning itself as a full-scale investment bank, the newly obtained license allows the firm to diversify its services. These now include venture capital investments and facilitating the formation of companies raising capital through securities. The move underscores GB Capital's ambitions to deepen its market presence.

GB Capital currently manages nine specialized companies, including GB Leasing and Factoring, Drive for Consumer Financing, GB Auto Rental, Capital for Securitization, Kredit for SME Financing, and GB Capital Sukuk, which focuses on Sharia-compliant issuances. The firm also holds stakes in several companies such as Bedaya for Real Estate Financing, MNT Halan, and Kaf for Life Insurance.

Tamer El-Emary, CEO of GB Capital, commented on this development: “Securing the promotion and underwriting license is a pivotal milestone that enhances our transformation and expands our service capabilities. Our aim is to drive market innovation and deliver cutting-edge financial solutions that address the evolving needs of our clients.”

Innovative financing and robust growth

GB Corp., founded in 1985 by late Egyptian auto tycoon Raouf Ghabbour, is a leader in the Middle East and North Africa’s automotive sector.  It operates as an integrated entity, with subsidiaries including GB Auto, GB Capital, GB Logistics, GB Ventures, GB Academy, and the Ghabbour Foundation for Development all adhering to the company's unified strategic vision. The Ghabbour family continues to hold a controlling 63.4-percent stake in GB Corp.

GB Capital oversees GB Corp’s non-banking financial services division, offering tailored financial solutions to a diverse client base, ranging from large corporations to SMEs and individual customers. Its innovative financing solutions align with Egypt’s Vision 2030, promoting financial inclusion and supporting small and medium-sized enterprises.

In a noteworthy performance, GB Corp reported a staggering 78.4-percent increase in consolidated revenues, totaling EGP 19.2 billion ($39.5 million) in the first half of 2024. This remarkable performance is attributed to strong contributions from both the Auto and Capital segments, with second-quarter revenues surging 69.3 percent year-on-year and 13 percent quarter-on-quarter, reaching EGP 10.2 billion ($210 million).