Active Mixed AidData Chinese Aid

ICBC contributes EUR 60 million to EUR 475 million syndicated loan to support the electric/hybrid vehicle production activities of Ford Otosan

€60M EUR

Funder	Industrial and Commercial Bank of China (ICBC)
Recipient Organization	Ford Otomotiv Sanayi A.S.
Country	Turkey
Start Date	Jul 14, 2021
End Date	Oct 17, 2031
Duration	3,747 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`96134`

Grant Description

ICBC and BOC contribution to EUR 475 million syndicated loan to support the electric/hybrid vehicle production activities of Ford Otosan On July 14, 2021, Ford Otomotiv Sanayi A.S. (‘Ford Otosan’) signed two loan agreements worth EUR 650 million with a group of Chinese and non-Chinese banks to support the company’s electric/hybrid vehicle production activities: an EUR 175 million bilateral loan from the European Bank for Reconstruction and Development (EBRD) and an EUR 475 million commercial loan from a syndicate consisting of 11 lenders (Akbank AG, Bank of China Limited, BNP Paribas Fortis Sa-Nv Brussels, Emirates NBD Bank PJSC, Green for Growth Fund Southeast Europe S.A.

SICAV-SIF, HSBC Bank Middle East Limited, the Dubai Branch of Industrial and Commercial Bank of China Limited, Mediobanca–Banca di Credito FinanziarioS.p.A., MUFG Bank Ltd, Qatar National Bank (Q.P.S.C.), and Société Générale.

📋 Loan / Grant Terms

📅 Maturity5 years

⏳ Grace Period2 years

The borrower was originally expected to use the loan proceeds by January 31, 2022 in order to finance the company investment program for upgrading its next generation one-ton commercial vehicle, which will include majority battery electrical vehicles ("BEV") and plug-in hybrid electrical vehicle ("PHEV") variants, in its production plants in Kocaeli, Turkey.

The project is expected to help Ford Otosan transform its Kocaeli facilities to become the first and only integrated production center for the assembly of electric vehicles in Turkey.

📋 Staff Comments

Ford Otomotiv Sanayi A.S. is a joint stock company incorporated and domiciled in Turkey that manufactures, assembles and sells motor vehicles and parts under the Ford brand. Established in 1959, Ford Otosan operates as a joint venture between Ford Motor Company (via Ford Deutschland Holding GmbH: 100% owned by Ford Motor Company) one of the leading and best-selling automobile brands globally, and Koc Holding, Turkey's largest investment holding company active in a variety of sectors from automotive to consumer durables, each holding a 41% equity stake. The rest of the Company shares are listed on Borsa Istanbul.
While it is known that the Dubai Branch of ICBC contributed EUR 60 million to the commercial loan syndicate, Bank of China Limited’s contribution to the commercial loan syndicate is unknown. The individual contributions of the banks that participated in the EUR 475 million syndicated loan are unknown. For the time being, AidData assumes equal contributions (EUR 41.5 million) across the remaining (10) members of the commercial loan syndicate.
AidData has estimated the maturity length by taking the average (6-years) of 5-years and 7-years.
For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.

📚 Sources & References

ICBC Annual Report 2021
Ford Otosan EV Syndicated Loan
Investor Presentation October 2021 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.