IFC Makes its First Syndicated Loan to an Operational Leasing Company

Press Release – International Finance Corporation

Istanbul — The International Finance Corporation, the private sector arm of the World Bank Group, has signed a $42.75 million loan agreement with Intercity, one of the leading vehicle fleet management companies in Turkey. Following an earlier IFC equity investment, the financing will provide long-term capital for the company’s growing fleet business. IFC’s loan consists of a $15 million A-loan for its own account, and a $27.75 million B-loan for the account of two participants, Cordiant of Montreal, Canada and the State Bank of India Los Angeles Agency.

IFC’s investment marks another important step in Intercity’s transformation from its founding in 1992 as a one-person operation to a company with approximately 20 percent market share, 90 employees, 6,000 cars under management, and more than US$20 million in annual revenue. The financing will strengthen Intercity’s long-term leasing of its vehicle fleet to a variety of private sector enterprises.

Khosrow Zamani, IFC’s director for Southeastern Europe and Central Asia, said, “IFC is pleased to contribute to Intercity’s business expansion. This loan and our previous equity investment will help Intercity expand its client base even further and strengthen its position as one of Turkey’s leading operational leasing companies.”

Jyrki Koskelo, IFC’s director for Global Financial Markets, added, “This investment cements IFC’s strong institution-building role in the development of Turkey’s financial markets. In strengthening one of the leading local operational leasing companies, we are contributing to the growth of the industry and continuing our support of the country’s private sector.”

Vural Ak, Intercity’s chief executive officer, noted, “IFC’s long-term capital investment in Intercity is a landmark investment. It is a sign of IFC’s confidence in Intercity and the Turkish financial system. The loan will enhance the well-established relationship between Intercity and IFC.” He added, “IFC fully understands and appreciates our vision of creating the leading vehicle operational leasing company in Turkey and has demonstrated its support through capital investments. We thank IFC for the confidence placed in us and look forward to further strengthening this relationship.”