Commercial Bank of Dubai Signs an Agreement with Gargash Car Rental to provide Asset Backed Lending finance
Dubai, 11 April 2021: Commercial Bank of Dubai, one of the leading banks in the UAE, has signed an agreement with Gargash Group, one of the most dynamic and reputed business conglomerates in the UAE, to provide structured medium-term Asset Backed Lending finance worth AED 150M to Gargash Car Rental (GCR) to accelerate the growth of the company as well as to further its expansion plans. Within its automotive vertical, Gargash Group represents some of the leading global automotive brands in the UAE, in addition to providing long term vehicle leasing services through GCR. Gargash Car Rental provides services to retail clients in partnership with SIXT Leasing and is one of the pioneers in long term vehicle leasing in the UAE, having built a strong portfolio within its first year of commercial operations. Further, GCR also provides commercial and fleet vehicle leasing services to a diversified set of clients across UAE.
The agreement was signed by Dr. Bernd van Linder, Chief Executive Officer of Commercial Bank of Dubai and Shehab M. Gargash, Managing Director and Group CEO of Gargash Group at a ceremony held recently at Gargash Group’s Dubai Board Room. The event was also attended by senior executives from both organizations.
Upon signing the agreement, Dr. Bernd van Linder, said: “The collaboration with Gargash Group is in line with our commitment to back the businesses driving the UAE economy, as they are a vital contributor to the growth of the country. It also illustrates our determination to provide our clients with best in class products and services that caters to their needs to help them expand achieve their future growth plans.”
From his side, Shehab M. Gargash, said: “When we launched the leasing product last year, we knew that this product will be an immediate success in the UAE market based on the changing consumer behavior insights we had gathered. We have a strong brand name with our historic success with the SIXT franchise and a team of industry experts who have championed the auto financing and leasing business. We are proud of our collaboration with Commercial Bank of Dubai with this facility and are hopeful of taking this partnership to the next level in the years to come.”
Asset Backed Lending is a unique product which offers unmatched structuring flexibility and rapid response times providing clients the benefit of conducting transactions in a manner aligned to their individual business models. This proposition is testament to our Customer First promise where CBD prioritizes meeting our client’s comprehensive requirements with tailored solutions to their financial needs.