Spanish automotive parts manufacturer Gestamp has secured a €150mn financing package to upgrade its plants.

The facility was arranged by the European Bank for Reconstruction and Development (EBRD) and includes a €50mn loan to provide for a bullet repayment after seven years, a seven-year direct EBRD loan of €60mn, with a two-year grace period, and €40mn which has been syndicated to UniCredit (€20mn), Société Générale Spain (€13mn) and Banco Bilbao Vizcaya Argentaria (€7mn).

The commercially syndicated portion has a tenor of five years. The EBRD remains the lender of record for the full amount.

Gestamp will use the finance to upgrade facilities in Russia, Poland, Hungary and Turkey, which produce parts for car manufacturers in each of the respective countries. 80% of the money is expected to be spent in Russia – Europe’s second largest auto market after Germany – and Turkey.

The EBRD’s managing director for industry, commerce and agribusiness Alain Pilloux says: “This transaction will facilitate the transfer of state-of-the-art technology and skills to the domestic supply chain in these countries, as well as promote the localisation of passenger car assembly by the world’s leading automakers.”