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- €2 million joint loan to help Turkey’s Dostel Makina expand production
- Auto-parts manufacturer responds to surge in electric vehicles (EV) components orders
- EBRD-TSKB in partnership to ease access to finance for Turkey’s corporates
Turkey’s auto-parts manufacturer Dostel Makina will expand production with a joint €2 million loan from the European Bank for Reconstruction and Development (EBRD) and Turkiye Sinai Kalkinma Bankasi (TSKB), the Industrial Development Bank of Turkey.
The loan will finance the production of components for electric and hybrid vehicles. The company is seeing a surge in orders as countries promote production and ownership of electric vehicles. Dostel Makina was founded in 1970 by Tarik Yucel and remains a privately-owned enterprise with customers mostly in Turkey and Europe.
Dostel Makina has previously benefited from the EBRD’s advisory services, funded by the European Union. The company received advice on project management, business development, industrial strategy, planning and corporate governance.
The new funds are divided equally between the EBRD and TSKB under a partnership aimed to improve and simplify access to finance for small and medium-sized enterprises across Turkey. Under a risk-sharing agreement, the two lenders provide loans to eligible businesses they jointly identified. Clients can use the loans to finance working capital, capital expenditure or refinance existing loans.
The EBRD is a leading institutional investor in Turkey and has invested €14 billion in the country to date through 351 projects, with 95 per cent of those investments in the private sector. The Bank’s €7 billion portfolio in Turkey is the largest among the 38 economies in the EBRD regions.