Ford Otosan Cargo Truck

Location:

Turkey

Project number:

45855

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Target board date:

30 Apr 2014

Status:

Repaying

PSD disclosed:

01 May 2014

Translated version of this PSD: Turkish

Project Description

The EBRD is considering €140 million long-term loan to Ford Otomotiv Sanayi A.S. to finance the development of new Ford Ecotorq engines, modernization of manufacturing processes, modernization of the existing Cargo model, development of a new Cargo model truck and the increase of truck production capacity at its Inonu plant, in Eskişehir.

Transition Impact

The Project represents a good opportunity for the Bank to achieve a strong transition impact in Turkey, particularly through supporting innovation and research and development (R&D) stemming from collaboration between industry, local academia and local suppliers. The Project will also set new corporate human resources standards in the industry in relation to inclusion and gender equality.

1. Transfer and dispersion of skills
The collaboration between Ford Otosan, local academic institutions and local suppliers will create a multi-layered skills transfer and demonstrate the essential steps for the creation of an innovation ecosystem necessary to move the industry into higher value added activities.

2. Setting standards for corporate governance and business conduct in relation to inclusion/gender
Systemic inclusion impact on gender will be achieved through the introduction of improved corporate standards and practices to increase the number of women accessing training and employment opportunities in the company. These will seek to create demonstration effect across the automotive sector in Turkey, where gender gaps are large in relation to labour practices and employment.

The Client

Ford Otomotiv Sanayi A.S. is incorporated in Turkey for the manufacturing and selling of motor vehicles and parts. The Company operates as a joint venture between Ford Motor Company and Koç Holding, holding 41% equity stake each, and the rest of the shares are listed on the Istanbul Stock Exchange.

Koç Holding is the leading industrial conglomerate in Turkey, with strong competitive edge in four core industries of energy, automotive, durable goods and banking.

Ford Motor Company is among the top manufacturer of vehicles in the world that distributes its vehicles across six continents.

EBRD Finance

€140 million senior unsecured A/B loan; of which €70 million will be for the account of EBRD and €70 million will be for the account of B-lenders.

Project Cost

€140 million.

Environmental Impact

Categorised B in accordance with 2008 Environmental and Social Policy. An integrated audit of the Company's corporate policies and procedures and Company's past and current performance against Turkish and EU legislation and Bank's Performance Requirements that was originally carried out in 2010 was updated during the environmental and social due diligence for this project, along with the completion of an environmental analysis of the current investment plan for the Eskişehir Plant. Due diligence confirmed that the Company operates according to international best practice from an environmental and social perspective, and that the previous Environmental and Social Action Plan (ESAP) has been implemented in a timely manner. The ESAP has been updated to reflect the influence the Company will have on their R&D partner in the implementation of best environmental and social practice. A gender component to increase women's access to employment opportunities is to be implemented and has been committed to within the ESAP.

Technical Cooperation

None.

Company Contact

Burak Cekmece
Treasury and Risk Manager
Ford Otomotiv Sanayi A.S.
Denizevler Mahallesi
Ali Uçar Caddesi No:53
Gölcük / Kocaeli TURKEY

Phone: +90 262 315 6960
Email: bcekmece@ford.com.tr

 

Business opportunities

For business opportunities or procurement, contact the client company.

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