Ford Otosan secures EUR 435 M syndicated loan from BRD, Société Générale

Automotive manufacturing company Ford Otosan Romania SRL (Ford Otosan Romania) obtained a EUR 435m financing from a syndicate of banks, arranged by SOCIETE GENERALE and BRD GROUPE SOCIETE GENERALE S.A., as Coordinating Mandated Lead Arrangers and Bookrunners.

Ford Otosan Romania is owned by Ford Otomotiv Sanayi A.Ş. (Ford Otosan); the Ford joint venture in which Ford and Koç Holding are majority shareholders. Ford Otosan is a publicly traded (18%) company, where Ford Motor Company (41%) and Koç Holding A.Ş. (41%) have equal shares, and has been one of the top three exporting companies in Turkey since 2004. CMS advised Ford Otosan during the negotiations of the financing documentation and the closing.

Gül Ertuğ, CFO of Ford Otosan, stated: “Our Craiova plant plays a significant role in Ford Otosan’s leadership in electric vehicle manufacturing in Europe. We are pleased to announce the signing of a syndicated credit agreement to finance ongoing facility, vehicle, and engineering investment projects at the Craiova Plant to achieve our growth plans in Europe. This credit is a strategic step highlighting the importance of Craiova in Ford Otosan’s future plans. We thank Societe Generale, BRD and all banks in the syndicate for their confidence in and contributions to the future of Ford Otosan and for their collaboration.”

Societe Generale’s Chief Regional Officer and CEO for Türkiye & CIS Batu Çetin added: “We are proud to demonstrate our support to the expansion of Turkish companies to wider Europe along with their efforts towards more sustainable next-generation technologies. The transaction reflects Societe Generale Group’s support to energy transition and stands as an important step towards furthering our long-standing relationship with Ford Otosan.”

Maria Rousseva, the CEO of BRD Groupe Societe Generale said: “We are pleased to finance this important project which is a significant step towards the electrification of the automotive industry in Romania. We have all necessary resources, know-how and experience to support key projects for the Romanian economy, as the one being developed at Ford Otosan Craiova.”

The CMS team advising Ford Otosan. CMS Finance Counsel Alina Tihan commented: “We are delighted to have advised Ford Otosan on this financing deal, which will play an important role in supporting its ambitious plans and strengthen its position as a leading automative manufacturing company in Europe.”

Cemal Cenk Tarhan, Treasury & Risk Management Lead of Ford Otosan said: “We are delighted to have secured this financing and would like to thank Alina and Diana for their guidance. The CMS team was able to provide us with excellent and pragmatic advice, and kept us informed throughout the process.”