GB Auto Shareholders discuss Obtaining EGP500 million Loans Today

Egypt’s biggest car assembler GB Auto will hold ordinary general meeting today to discuss obtaining two loans from the company’s main investor and Chairman Raouf Ghabbour.

The first loan will be around $32 million (EGP 225 million) at an annual interest rate of 4.5%, while the second one will be around $34.5 million (EGP 275 million) at an annual interest rate of 10.5%.
GB Auto (AUTO.CA) noted that the interest rate for the two loans, considered less than the one Prevailing in the lending market now, which will share in narrowing the financial cost.

Meanwhile, GB Auto released financial statements for Q1 ended on March 31, 2014, which showed EGP 71.503 million consolidated net profit, with 5.8% growth year-over-year compared with EGP 67.576 million net profits in the same period a year earlier.