EBRD, Ford Otosan charge ahead with big EV lending

The European Bank for Reconstruction and Development (EBRD) is supporting the production of a range of next generation all-electric and plug-in hybrid variants of one-ton commercial vehicles for the European market by arranging a 650 million-euro loan to Ford Otosan, US automaker Ford's joint venture with Turkey's Koç Holding, according to a statement from the bank on July 14.

The financing, shared by the EBRD and commercial lenders, is part of the bank's drive to fund the green transition and supports Ford's aim of leading the electrification of the automotive industry for a climate-friendly, more sustainable future, said the statement.

Ford Otosan is Europe's leading commercial vehicle manufacturer. It announced in March that it will open the first integrated electric vehicle (EV) factory of Turkey in the industrial Kocaeli province in 2022 to manufacture new-generation commercial vehicles and batteries. The investment worth 2 billion euros ($2.4 billion) is expected to create 3,000 direct and 15,000 indirect jobs at the first phase of the factory, according to the firm.

The financial package consists of a 175 million-euro loan for the EBRD's own account and 475 million euros in debt syndicated to other lenders under the bank's A/B loan syndication structure.

Participating lenders include Akbank AG, Bank of China, BNP Paribas, Emirates NBD Bank, Green for Growth Fund, HSBC, Industrial and Commercial Bank of China, Mediobanca, MUFG, QNB and Société Générale.

EVs are seen as key to the future of transport, as more and more governments move to decarbonise the industry to speed up reductions in greenhouse gas emissions and combat climate change.

The new one-ton Ford Transit Custom will be launched in the first half...