The National Automotive Company (NATCO) has signed an agreement with Beltone Financial to act as its financial advisor to its EGP1bn bond offering on the Egyptian Exchange (EGX), a portion of which will be allocated for the issuance of green bonds.
The issuance will be used to finance the company’s expansion in the electric vehicle (EV) sector, manufacturing car chargers, establishing charging stations, distribution, and after sales spots. The agreement also aims to to study the listing of a portion of the company’s shares on the EGX.
Yasser Saleh Ibrahim, CEO of NATCO, said that the group will issue EGP 1bn worth bonds during the coming period to finance expansion in distribution centers and after sales services of Mercedes-Benz across Egypt after signing a new distribution deal with the German company.
This is in addition to penetrating the field of electric vehicles sales, distribution, maintenance, and charging by establishing a network of charging stations, either standard, fast, or ultra-fast stations, to support all types of EV charging, whether European, Chinese, or American protocols, across all of Egypt’s governorates to cope with global and domestic trend shifts toward sustainable electric transportation solutions. NATCO also plans to provide an unprecedented package of technical solutions locally and regionally to facilitate and encourage consumers to buy and use various EV categories.
The company is also considering the manufacture of EV chargers in collaboration with local and international partners, for private and public use, via the industrial arm of the group, Egyptian German Automotive Company (EGA), which currently manufactures Mercedes-Benz four-wheel drive cars in Egypt.
“The strategic plans of the group are based on catching up with the rapid changes in car manufacturing and distribution, in addition to providing advanced technological solutions to enable Egyptian consumers to enjoy advanced EV technologies and establishing a massive network of charging stations across all of Egypt’s governorates,” Ibrahim added.
He pointed out that the company is studying the possibility of a partial listing of its shares in an initial public offering (IPO) to increase investors’ shares in the company and maximize the value and benefit of current and future shareholders. The company also aims to unlock the prospects of financing its current and future operations.
Ibrahim concluded that the company has always been leading the vision of future transformations and has the ability to turn visions into reality, strengthening the future value of the group. He added that his company is proud to be a reliable partner in providing infrastructure for the coming years in service of Egyptian consumers during the next era of vehicle ownership and operation.
Mohamed ElAkhdar, Head of Investment Banking at Beltone Financial, said, “We are glad to announce the signing of this agreement with NATCO to act as the financial advisor for the EGP1bn bond issuance since it is a leading company in this sector in Egypt, which makes it promising investment opportunity. We expect the company to be able to attract many investors domestically and globally.”
Beltone is studying all of the strategic plans of NATCO, aiming at providing the required financing through the best possible practices to enhance the company’s solvency and obtain the highest return on equity, as well as deciding on the most strategic time for its IPO.