Automotive August 2021

Ford Otosan CEO Haydar Yenigün
EBRD, Ford Otosan charge
ahead with big EV lending
The European Bank for Reconstruction
and Development (EBRD) is supporting
the production of a range of next
generation all-electric and plug-in hybrid
variants of one-ton commercial vehicles
for the European market by arranging
a 650 million-euro loan to Ford Otosan,
US automaker Ford’s joint venture with
Turkey’s Koç Holding, according to a
statement from the bank on July 14.
The financing, shared by the EBRD
and commercial lenders, is part of the
bank’s drive to fund the green transition
and supports Ford’s aim of leading the
electrification of the automotive industry
for a climate-friendly, more sustainable
future, said the statement.
Ford Otosan is Europe’s leading commercial
vehicle manufacturer. It announced in
March that it will open the first integrated
electric vehicle (EV) factory of Turkey in
the industrial Kocaeli province in 2022 to
manufacture new-generation commercial
vehicles and batteries. The investment
worth 2 billion euros ($2.4 billion) is
expected to produce 3,000 direct and
15,000 indirect jobs at the first phase of the
factory, according to the firm.
The financial package consists of a 175
million-euro loan for the EBRD’s own
account and 475 million euros in debt
syndicated to other lenders under the
bank’s A/B loan syndication structure.
Participating lenders include Akbank AG,
Bank of China, BNP Paribas, Emirates
NBD Bank, Green for Growth Fund, HSBC,
Industrial and Commercial Bank of China,
Mediobanca, MUFG, QNB and Société
Générale.
EVs are seen as key to the future of
transport, as more and more governments
move to decarbonise the industry to speed
up reductions in greenhouse gas emissions
and combat climate change.
The new one-ton Ford Transit Custom will
be launched in the first half of 2023. The
battery-powered EVs and plug-in hybrid
variants will substantially reduce harmful
emissions, promoting a more climatefriendly
transport option.
Arvid Tuerkner, EBRD Managing Director
for Turkey, said: “Electric vehicles are
a promising step towards lowering
greenhouse gas emissions from the
transport sector and I am pleased that
the EBRD is able to support Turkey in
becoming a European hub for commercial
EV production, bringing in know-how,
producing jobs and promoting a lowcarbon
economy. I am also delighted that
we were able to attract sizeable financing
from commercial lenders, reinforcing
our commitment to mobilising private
investment for global priorities.”
Ford Otosan CEO Haydar Yenigün said:
“As Ford Otosan, the leading commercial
vehicle manufacturer in Europe, we
are proud to sign one of the biggest
financing agreements in the automotive
sector with the EBRD within the scope
of our largest automotive investment in
Turkey, as previously announced. With
this strategic investment, as the country’s
leading exporter, not only of vehicles but
also engineering and technology for many
years, we will have the opportunity to
work on advanced technologies that will
contribute to the national economy and
produce more sustainable products for a
greener world.”
Turkey exported more than 900,000
vehicles to 180 countries across five
continents last year and the automotive
industry’s exports in 2020 exceeded $25
billion amid the COVID-19 pandemic.
Ford Otosan generates 25 percent of
Turkey’s total automotive production and
exports, and it employs 12,500 people
currently. Previously, the firm produced
Turkey’s first electric commercial vehicle
- Custom PHEV. The EBRD is a leading
institutional investor in Turkey and, to date,
has invested more than €13 billion in the
country through 341 projects, with 96 per
cent of those in the private sector.
August 2021 28