EBRD loans 200 million to Turkey's Tofas
(MENAFN- The Journal Of Turkish Weekly) The European Bank for Reconstruction and Development (EBRD) has made a loan of €200 million ($222.1 million) to Turkish automaker Tofas the bank announced in a statement late on Thursday.
The loan is to support research and development in order to boost the competitiveness of both the automotive sector and the country's economy the statement said.
Tofas Turk Otomobil Fabrikasi is a joint venture between Italy’s Fiat Chrysler Automobiles and Turkey’s Koc Holding which is one of the largest industrial groups in Turkey.
Specifically the automaker will use the EBRD financing to build two new models of passenger cars – a hatchback and a station wagon – both targeted for export according to the statement.
The loan will help finance the production of approximately 700000 vehicles over 2016-22 at the company’s plant in Bursa. The loan will also finance investments outsourced to suppliers creating stronger ties across the value chain the statement said.
The EBRD an experienced investor in the automotive industries of eastern Europe and North Africa also said that it will help Tofas provide more employment opportunities for young people and women through expanded vocational training and closer partnerships with schools supporting best practices in recruitment career management and workplace practices.
In Turkey the Bank has invested €6 billion ($6.6 billion) in almost 160 such projects in infrastructure energy agribusiness industry and finance. It has also mobilised over €12 billion ($13.3 billion) for these ventures from other sources of financing.
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