Socit Gnrale Corporate & Investment banking, CALYON Crdit Agricole CIB, FORTIS Global Export & Project Finance (GEPF), ING Wholesale Banking and Intesa Sanpaolo, SACE and the European Investment Bank (EIB)have successfully closed a 450 million financing facility for Trk Otomobil Fabrikasi A.S. (TOFAS).
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 120 million facility fully guaranteed by SACE.” A 200 million EIB facility. This facility is split into one tranche of 150 million for which the Mandated lead Arrangers delivered a guarantee for the commercial risk and a second tranche of 50 million where EIB keeps the commercial and political risk.” A 130 million tied commercial loan facility.
Socit Gnrale Corporate & Investment banking was mandated by TOFAS as global coordinator bank. During the arranging phase Socit Gnrale Corporate & Investment banking acted as documentation agent, Fortis acted as technical agent and modelling bank, while CALYON Crdit Agricole CIB acted as SACE facility agent and Intesa Sanpaolo as EIB agent.
In the post-signing phase, Socit Gnrale Corporate & Investment banking will act as intercreditor agent while CALYON Crdit Agricole CIB will act as SACE facility agent, FORTIS as security and offshore account agent, Intesa Sanpaolo as EIB agent.
The five Mandated Lead Arrangers are lenders in the three facilities with equal participation.