Intercity obtains EUR 115 million syndicated loan to expand its car fleet

Intercity obtains EUR 115 million syndicated loan to expand its car fleet

Intercity, the leading car leasing company in Turkey with a fleet of approximately 25,000 cars, has secured a EUR 115 million syndicated loan arranged by Dutch development bank FMO. Lenders and participants include FMO, Dutch bank and security agent ING, German development bank DEG, Canadian emerging market investor Cordiant and French development financier Proparco.

The Turkish economy is growing and the demand for car leasing is on the rise. The loan will allow Intercity to keep increasing its fleet, and to lay a robust foundation for further expansion. To reduce carbon emissions of a growing car fleet, the package contains an incentive for Intercity to lease out at least 500 energy efficient/hybrid cars.

This transaction reflects FMO’s mobilization strategy. In addition to providing a EUR 40 million loan itself, FMO has catalyzed EUR 75 million through engaging commercial partners and other development finance institutions, enabling a larger transaction and development impact. In the case of Intercity, this means helping a well-run company to grow its business, create new jobs and further improve its practices, setting high standards in the leasing market.

About Intercity

Intercity, founded in 1992, is the Turkish market leader in corporate car fleet management. The company has a stable 20% market share, dominating the leasing market and is acting as the prime brand for the past decade in Turkey. Operating in a dynamically growing economy, opportunities for expansion are plentiful. Since opening up the Turkish market as first entrant, Intercity has been a frontrunner in terms of quality, service and governance and is keen to continue with its leadership in all of these areas going forward. One of the main competitive advantages of the Company is its strong shareholding composition with Mitsubishi Corporation and Mitsubishi UFJ lease & Finance Co. Ltd., owning 47% of the Company sand 51% of the Company belonging to the Turkish entrepreneur and founder, Mr Ali Vural Ak. The committed shareholders have a mutual understanding for growing the business further in a controlled and profitable manner. 

Mete Onol, CFO Intercity states. “Despite the recent turmoil in the international markets, the new financing, the largest in the company’s history, proves to be a good example of successful cooperation with Mitsubishi and its value add to the business.”

Daf Dubbelman, Senior Investment Officer FMO noted, “Arranging this financing, one of the larger syndicated transactions in Turkey this year, required the right mix of a sound business model, a committed borrower and dedicated banks.”

About FMO

FMO (the Netherlands Development Finance Company) is the Dutch development bank. It supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs. FMO believes a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life. With an investment portfolio of  EUR 5 billion, FMO is one of the largest bilateral private sector development banks worldwide. See  

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