Cordiant backs a €115 million car leasing firm service expansion in Turkey

FINAL

 

October 3 2011

Issued on behalf of Cordiant Capital by Mattison Public Relations

Cordiant backs a €115 million car leasing firm service expansion in Turkey

• Company leases a quarter of all cars in Turkey
• Financial incentive for firm to lease out at least 500 hybrid cars

Cordiant Capital Inc. (“Cordiant”), the leading emerging markets private debt fund manager, is backing a €115 million expansion of Turkey’s largest car leasing business into the SME sector. The syndicated loan is one of Turkey’s largest this year.

Cordiant’s US$ 26.6 million loan to Intercity will help expand the company’s 25,000 car fleet, create new jobs and make hybrid vehicles more widely available to Turkish businesses.

David Creighton, President and CEO of Cordiant, comments: “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.”

“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.”

Cordiant’s loans are typically asset backed and made alongside bi-laterals such as the Dutch development bank, FMO, or multilaterals such as the International Finance Corporation (IFC), and the European Bank for Reconstruction and Development (EBRD).

Mitsubishi Corporation and Mitsubishi UFJ Lease & Finance Co. Ltd are major shareholders in Intercity, with 51% belonging to the Turkish founder, Mr Ali Vural Ak.  The shareholders are committed to growing the business in a prudent and profitable manner.

CSR credentials boosted by hybrid leasing incentive

Cordiant explains that the investment package includes a financial incentive for Intercity to lease out at least 500 hybrid cars. It will 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. We are delighted to support Intercity in helping more and more Turkish businesses to gain affordable access to hybrid cars.”

Cordiant says that additional lenders for the €115 million loan include the Dutch development Bank FMO, as arranger, German development bank DEG, ING (also security agent) and French development financier Proparco.

 ENDS

About Cordiant Capital

Founded in 1999, Cordiant pioneered the creation of emerging market corporate loan funds that invest in partnership with International Financial Institutions. Cordiant has managed over $2.2 billion in subscriptions from some of the world’s largest institutional investors in three emerging market loan funds; the ICF Debt Pool; and one private equity fund, the Canada Investment Fund for Africa. The firm has made investments in nearly 200 companies in more than 50 countries. It has exposure to all major sectors, including a large number of infrastructure investments. Cordiant is a signatory to the UN Principles for Responsible Investment.

Press contacts

David Creighton,
President and CEO
Cordiant Capital
Tel: + 1 514 286 1142
info@cordiantcap.com

Nick Mattison or Fay Israsena
Mattison Public Relations
Tel: +44 (0) 20 7645 3636