Cordiant’s $26.6 million loan to Intercity will help expand the company’s 25,000 car fleet, create new jobs and make hybrid vehicles more widely available to Turkish businesses.

David Creighton, president and chief executive officer of Cordiant, said: ‘Demand for car leasing in Turkey is continuing to increase as the leasing market in Turkey is still underserved and also due to the strong performance of the Turkish economy.

‘Intercity’s position as a market leader, with a 25% share of the market, their strong management team and careful credit control processes make this a very attractive transaction for us. The absence of some global banks from this kind of lending means the pricing is compelling.’

 Cordiant’s loans are typically asset backed and made alongside bi-laterals such as the Dutch development bank, FMO, or multilaterals such as the International Finance Corporation (IFC), and the European Bank for Reconstruction and Development (EBRD).

Mitsubishi Corporation and Mitsubishi UFJ Lease & Finance Co are major shareholders in Intercity, with 51% belonging to the Turkish founder, Ali Vural Ak.  

Cordiant explains that the investment package includes a financial incentive for Intercity to lease out at least 500 hybrid cars. It will boost the company’s corporate social responsibility credentials as well as provide an opportunity for Turkish businesses to reduce their environmental impact.

Cordiant says that additional lenders for the €155 million loan include the Dutch development Bank FMO, as arranger, German development bank DEG, ING (also security agent) and French development financier Proparco.