GB Auto, Egypt's biggest listed automobile assembler, said on Sunday it plans to launch a finance company offering loans to car buyers in a move to expand its sources of revenue. The finance company, Drive Car Trading, will be launched in the second quarter with 50 million Egyptian pounds ($8.4 million) in capital.
It plans to expand the unit's capital to 150 million pounds after five years depending on business growth, GB Auto said. GB Auto said it intends to "diversify its revenue stream base" to cover consumer finance and after-sales.
"The launch of a consumer finance venture is a natural progression of our strategy. We are particularly excited to expand our product range to include the financing of Hyundai and Mazda passenger cars," said Raouf Ghabbour, chief executive of GB Auto.
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