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NATCO hires Beltone Financial’s unit as financial advisor for EGP 1B bond issue

NATCO hires Beltone Financial’s unit as financial advisor for EGP 1B bond issue

ArabFinance: The National Automotive Company (NATCO), the automotive and car related business management company, has appointed Beltone Investment Banking, an affiliate of Beltone Financial, as its financial advisor.

Beltone Investment Banking will manage NATCO’s bond offering worth EGP 1 billion on the Egyptian Exchange (EGX), according to a press release.

Proceeds from the bond issue will be used to finance NATCO’s expansion plan in the electric vehicle (EV) sector, manufacturing car chargers, setting up charging stations, distribution, and after-sales spots.

“The group will issue EGP1bn in bonds during the coming period to finance expansions in distribution centers and after sales services for its distribution network of Mercedes-Benz in several places across Egypt after signing a new distribution deal with Mercedes-Benz,” Yasser Saleh Ibrahim, CEO of NATCO, commented.

NATCO is also mulling over manufacturing of EV chargers in collaboration with local and international partners, for private and public use.

The manufacturing process will be carried out through NATCO’s industrial arm, Egyptian German Automotive Company (EGA), which currently manufactures Mercedes-Benz 4X4 passenger cars in Egypt.

Moreover, the two companies have signed an agreement to study the listing of a percentage of NATCO’s shares on the EGX, the release added.

Additionally, Ibrahim said that the group is considering the possibility of a partial listing of its shares in an initial public offering (IPO) to boost investors’ shares in NATCO and maximize the value of current and future shareholders.

On the other hand, Beltone Investment Banking is studying the automotive group’s strategic plans, to provide the required financing through the best possible ways, in order to improve the company’s solvency, to obtain the highest return on equity, and to decide on the most strategic time for NATCO’s IPO.

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