EBRD to Loan Ford Otosan €150m

The EBRD’s Board has given final approval for a loan of up to €150 million for automotive manufacturer Ford Otomotiv Sanayi A.S (Ford Otosan). The loan will finance the vendor tooling needs of Ford Otosan’s capex program.

The EBRD hopes the loan will stimulate the development of new products and technologies, increase local competition among other similar ventures, and create links between new and existing suppliers of Ford products. The package will initially consist of €60 million held by the EBRD, with the remaining €90 million syndicated to commercial banks.

If more financing is added in the future, the total amount of the package could go as high as €460 million.

Ford Otomotiv Sanayi A.S (www.ford.com.tr)
Ford Otosan is a joint venture between Ford Motor Co. and Turkey’s Koc Holding. Each partner holds an equity share of 41%, with the remaining shares traded on the Istanbul Stock Exchange.

The company has been Turkey’s leading domestic auto maker for eight years running, with a market share of just over 15%, and is the third largest automotive exporter in the region.

Total sales for 2009 were USD $86.7 billion; producing net income of USD $5.5 billion and a profit of USD $333 million.