Turkish fleet lessor Intercity has received a
€115m capital injection in the form of a loan from development
banks and investors.
Intercity will use the syndicated loan to
expand into the SME sector and increase the number of hybrid cars
in its managed fleet.
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The loan was arranged by Dutch development
bank FMO and lenders and participants include FMO, fellow Dutch
bank ING, German development bank DEG, Canadian emerging market
investor Cordiant and French development financier Proparco.
Intercity, which with a 25% share of the
market is the country’s largest car leasing business, is owned 47%
by Japanese leasing company Mitsubishi UFJ Finance.
Mete Onol, chief financial officer of
Intercity said: “Despite the recent turmoil in the international
markets, the new financing, the largest in the company’s history,
proves to be a good example of successful cooperation with
Mitsubishi and its value add to the business.”
David Creighton, president and CEO of one of
the lenders Cordiant, said: “Demand for car leasing in Turkey is
continuing to increase as the leasing market in Turkey is still
underserved and also due to the strong performance of the Turkish
economy.”
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By GlobalData“Intercity’s position as a market leader, with
a 25% share of the market, their strong management team and careful
credit control processes make this a very attractive transaction
for us. The absence of some global banks from this kind of lending
means the pricing is compelling.”
Creighton also said the investment package
includes a financial incentive for Intercity to lease out at least
500 hybrid cars to boost the company’s corporate social
responsibility credentials as well as provide an opportunity for
Turkish businesses to reduce their environmental impact.
David Creighton says: “As the Turkish economy
grows and modernises the pressures to improve environmental
performance increases.”
grant.collinson@vrlfinancialnews.com
