- EBRD loan to finance Ford Otosan’s investment in next-generation electric vehicles
- Loan builds on €650 million commitment to Ford Otosan in 2021 that was shared by the EBRD and commercial lenders
- Ford Otosan’s Kocaeli plant will become the firm’s European hub for the production of electric commercial vehicles
The European Bank for Reconstruction and Development (EBRD) continues to support the production of electric vehicles in Turkiye, arranging a loan of €200 million to Ford Otomotiv A.Ş. (Ford Otosan), a leading automotive manufacturer, to finance the company’s investment programme for upgrading its next generation of commercial vehicles including battery electric vehicles and plug-in hybrid electric vehicles.
€54 million of the loan is for the account of the EBRD and up to €146 million is syndicated to commercial lenders under the Bank’s A/B loan syndication structure. In this financing model, commercial banks and certain qualifying private-sector lenders participate in an EBRD loan on market terms, with the EBRD remaining the lender of record for the entire loan amount. Participating lenders include the Green for Growth Fund, HSBC, MUFG, Société Générale and ILX.
The loan is an extension to the €650 million loan to Ford Otosan in 2021 shared by the EBRD and commercial lenders and is part of the Bank’s drive to fund the transition to a green economy. The financing also supports Ford Otosan’s aim of leading the electrification of the automotive industry for a climate-friendly, more sustainable future.
Arvid Tuerkner, EBRD Managing Director for Türkiye, said: “Electric vehicles are essential to a net-zero future and we are proud to be partnering with Ford Otosan, an industry leader, in transforming Türkiye into a European hub for the production of commercial electric vehicles.
“I am happy to see that we are continuing our partnership with lenders, launched in 2021 with a €650 million financial package,” he added. “Our partners have put their faith in us and used their resources in support of a common goal. We will remain committed to a green future in Türkiye and in the wider world.”
The proceeds of the loan will help Ford Otosan to transform its Kocaeli facilities into an integrated manufacturing centre for the assembly of electric vehicles in Türkiye, support higher operational standards and contribute to the digitalisation and integration of the supplier base through wider integration into the value chain.
Güven Özyurt, General Manager of Ford Otosan, said: “As the leading manufacturer of electric commercial vehicles in Europe, Ford Otosan is also leading a new era of sustainable manufacturing, rethinking not just what we build, but how we build. As a company that has always followed the mission of offering products and services that benefit the environment and society, we are building a state-of-the-art, sustainable plant in our Kocaeli facilities with the aim of a carbon-neutral future. Our electric vehicles and our new plant will play a significant role in maintaining our long-term sustainability ambitions of becoming carbon neutral in our facilities by 2030, in suppliers and logistics by 2035 and in products (including heavy commercial vehicles) by 2040.”
Ford Otosan, a global automotive manufacturer with a broad production portfolio including passenger and commercial vehicles, currently operates in four locations (three in Türkiye and one in Romania). It is a joint venture between Ford Motor Company and Koç Holding, Türkiye's largest investment holding company, with leading positions in the energy, automotive, consumer durables and finance sectors. Ford Otosan is also Europe’s leading manufacturer of commercial vehicles.
The project reflects the EBRD’s commitment to the country’s green agenda, as the investment aims to support the large-scale manufacturing of battery electric and hybrid electric commercial vehicles, a significant step towards global decarbonisation.
The EBRD is a leading institutional investor in Türkiye. To date, the Bank has invested €17 billion in the country through 390 projects, with the overwhelming majority of those investments in the private sector.