Turkey’s leading tire producer signs two credit agreements for $310 million
ISTANBULBrisa Bridgestone Sabancı, a leader in the Turkish tire sector, has announced that it has signed two separate long-term loan agreements with the European Bank for Reconstruction and Development (EBRD) and the MUFG’s Core Banking Unit for $150 million and $160 million respectively.
The loans will be used for the financing of both the investment of the second production plant, which is under construction in the Central Anatolian province of Aksaray, and additional general requirements, according to an Aug. 22 statement.
Brisa Bridgestone Sabancı is a joint venture between one of Turkey’s leading industrial and financial conglomerates, Sabancı Holding, and Japan’s Bridgestone Corporation.
The credits have total maturity period of seven years and a cost of USD libor +1.90-1.95, the statement added.
The new production facility in Aksaray is set to become the company’s strategic hub, serving the growing market for tires in Turkey and neighboring countries, according to a separate statement by the EBRD on Aug. 23.
“Brisa has already accelerated employment operations for the new plant in Aksaray and expects to create 550 jobs, offering opportunities in particular to young people. Brisa and the EBRD will join forces to develop technical and vocational training programs that will provide young people with the skills that are currently in demand,” added the EBRD statement.