The FINANCIAL — Société Générale Corporate & Investment banking, CALYON Crédit Agricole CIB, FORTIS Global Export & Project Finance, ING Wholesale Banking and Intesa Sanpaolo, SACE and the European Investment Bank (EIB) have successfully closed a EUR 450 million financing facility for Türk Otomobil Fabrikasi A.S.
The funding will enable TOFAS to finance a new assembly line in TOFAS’ Bursa plant for the production of a new light commercial vehicle to be sold in several European markets under FIAT and TOFAS brand names.
The successful closing of this transaction was possible thanks to:
• The strong involvement of the five Mandated Lead Arrangers, and of SACE and the EIB.
• Management by the Global Coordinators of the different parties in the transaction.
• Involvement of TOFAS to coordinate with the vehicles’ off taker.
• Very attractive conditions for such a medium tem financing in the corporate sector in
Turkey and the automotive sector.
In order to obtain longer financing tenors and attractive financing terms, TOFAS decided to use cover from the Italian Export Credit Agency (SACE) and the EIB.
The 10-year structured financing with assignment of the rights of off take agreement to FIAT, with TOFAS as Borrower, was signed on March 4th 2008 and consists of three tranches:
A EUR 120 million facility fully guaranteed by SACE.
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