The EBRD is supporting the planned expansion of Faurecia S.A., a leading global automotive components producer, with a EUR 122.5 million loan. Of this total amount, the EBRD will take EUR 40 million on its own books as an “A loan” while the balance will be syndicated as a “B loan” to other participating banks.
The funding will contribute to Faurecia’s capital expenditure plan in the four EBRD countries of operations: Morocco, Poland, Romania and Russia.
Faurecia is the world’s sixth largest and Europe’s third largest producer of automotive components in terms of revenues. The company sells to all main original equipment manufacturers in the car industry.
Frederic Lucenet, EBRD Director, Manufacturing & Services, said: “We strongly welcome the opportunity to support the further development of a company of Faurecia’s size and relevance as we share the company’s assessments and views. Strengthening activities in potential growth markets will be a significant boost for our respective countries of operations throughout the car industry’s complex supply chain. This will have knock-on effects on employment as well as the transfer of know-how.”
Over the years the EBRD has consistently supported the establishment and development of the automotive industry in its countries of operations. Back in 1994, the Bank provided Fiat with a loan to modernise its operations in Poland and in later years the EBRD supported other major players such as General Motors, Toyota, Renault, Volkswagen and others as well as domestic and international suppliers with their expansion.
At the EBRD the automotive industry is part of the Bank’s activities in manufacturing and services. In this sector alone to date the EBRD has provided more than EUR 8.5 billion in almost 500 projects for a total investment value of EUR 28 billion.