ICBC contributes EUR 60 million to EUR 475 million syndicated loan to support the electric/hybrid vehicle production activities of Ford Otosan

On July 14, 2021, Ford Otomotiv Sanayi A.S. (‘Ford Otosan’) signed two loan agreements worth EUR 650 million with a group of Chinese and non-Chinese banks to support the company’s electric/hybrid vehicle production activities: an EUR 175 million bilateral loan from the European Bank for Reconstruction and Development (EBRD) and an EUR 475 million commercial loan from a syndicate consisting of 11 lenders (Akbank AG, Bank of China Limited, BNP Paribas Fortis Sa-Nv Brussels, Emirates NBD Bank PJSC, Green for Growth Fund Southeast Europe S.A. SICAV-SIF, HSBC Bank Middle East Limited, the Dubai Branch of Industrial and Commercial Bank of China Limited, Mediobanca–Banca di Credito FinanziarioS.p.A., MUFG Bank Ltd, Qatar National Bank (Q.P.S.C.), and Société Générale. The pricing of the two loans was structured on the following basis: EUR 325 million has a 5-year maturity, 2-year grace period, and interest rate of Euribor + a 2.30% margin and another EUR 325 million has a 7-year maturity, 2-year grace period, and an interest rate of Euribor + a 2.45% margin. The borrower was originally expected to use the loan proceeds by January 31, 2022 in order to finance the company investment program for upgrading its next generation one-ton commercial vehicle, which will include majority battery electrical vehicles ("BEV") and plug-in hybrid electrical vehicle ("PHEV") variants, in its production plants in Kocaeli, Turkey. The project is expected to help Ford Otosan transform its Kocaeli facilities to become the first and only integrated production center for the assembly of electric vehicles in Turkey.

Additional details

1. Ford Otomotiv Sanayi A.S. is a joint stock company incorporated and domiciled in Turkey that manufactures, assembles and sells motor vehicles and parts under the Ford brand. Established in 1959, Ford Otosan operates as a joint venture between Ford Motor Company (via Ford Deutschland Holding GmbH: 100% owned by Ford Motor Company) one of the leading and best-selling automobile brands globally, and Koc Holding, Turkey's largest investment holding company active in a variety of sectors from automotive to consumer durables, each holding a 41% equity stake. The rest of the Company shares are listed on Borsa Istanbul. 2. While it is known that the Dubai Branch of ICBC contributed EUR 60 million to the commercial loan syndicate, Bank of China Limited’s contribution to the commercial loan syndicate is unknown. The individual contributions of the banks that participated in the EUR 475 million syndicated loan are unknown. For the time being, AidData assumes equal contributions (EUR 41.5 million) across the remaining (10) members of the commercial loan syndicate. 3. AidData has estimated the maturity length by taking the average (6 years) of 5 years and 7 years. 4. AidData has estimated the all-in interest rate by adding average 6-month EURIBOR in July 2021 (-0.516%) to 2.375% (the average of 2.45% and 2.3%)

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