The European Bank for Reconstruction and Development (EBRD) has arranged a €122.5mn loan for Faurecia, an automotive components manufacturer.
The development bank will lend €40mn of the loan from its own book and has arranged for the remaining balance (€82.5mn) to be syndicated to a group of commercial lenders.
GTR can reveal that Sberbank is mandated lead arranger for the commercial tranche and has contributed €35mn from its Russian operations, €15mn from Germany and €5mn from Slovenia. Joining as lead arrangers are BNP Paribas (€10mn) and Société Générale (€10mn). Bank Inter of Spain is an arranger and has lent €7.5mn.
The EBRD’s tranche has a tenor of 6.5 years, with the commercial tranche maturing in 4.5 years.
The finance will be used to fund Faurecia’s capital expenditure programme in Morocco, Poland, Romania and Russia.
Faurecia is a French-headquartered company whose controlling shareholder is Citroën. It is the sixth-largest producer of automotive parts in the world and third-largest in Europe. It counts most of the world’s major car manufacturers among its clients.
The EBRD’s director of manufacturing and services Federic Lucanet says the loans will boost productivity in the four EBRD member states in which Faurecia will invest.
He explains: “Strengthening activities in potential growth markets will be a significant boost for our respective countries of operations throughout the car industry’s complex supply chain. This will have knock-on effects on employment as well as the transfer of know-how.”
Meanwhile, the EBRD has also opened a credit line with Belvnesheconombank (Bel VEB) in Belarus. The €10mn loan has a five-year tenor and will be used to support SMEs in Belarus.
The renewable energy sector stands to benefit most, with Bel VEB saying that the finance will be eligible for companies undertaking energy efficiency projects.