Europen Endustri (EUREN) has obtained a Turkish lira (TRY) 500mn ($21mn) loan with a maturity of 10 years and a grace period of two years, the company said on June 12.

The loan agreement was signed with government-run Development Bank of Turkey (TKYB/KLNMA). But, the central bank is the source of the loan.

The facility has a cost of Turkish lira overnight reference rate (TLREF) plus 1%. TLREF stood at 10% on June 15. It could move up with the Erdogan regime’s latest orthodox turn in economic policy.

(Story chart: Lately, the lira deposit and consumer loan rates have boomed. Corporate loan rates remain flat.)

The central bank extends loans to companies under the Advance Loans Against Investment Commitment (Yatirim Taahhutlu Avans Kredisi/YTAK) scheme. 

YTAK was launched in 2020 during the COVID-19 pandemic. About TRY 244bn has so far been extended under the scheme, representing a 3% share of the TRY 9 trillion ($380.2bn) lira loans volume of Turkey.

(The figure for YTAK loans is provided on the central bank’s EVDS data tool under the CBRT Balance Sheet Data section. In the Central Bank Weekly Statement, the figure is labelled as "A811.Rediscount Credits TRY".)

Europen will use the loan to finance its investment to produce glass for photovoltaic (PV) solar panels.

In December, Europen signed a $37mn agreement with engineering company China Triumph International Engineering (CTIEC) to build a glass oven and production facility in Kutahya province.

The total investment cost amounts to TRY 1.4bn. Europen will finance the remaining sum via its equity.

In 2022, Europen sold a 20% stake for a consideration of TRY 549mn via a Borsa Istanbul initial public offering (IPO).

Currently, Idris Nebi Hatipoglu holds a 47% stake, which represents 65% of voting rights thanks to privileged Type A and Type B shares, while Tugba Ozturk has an 18% stake. A 30% stake is listed on Borsa Istanbul.

Eskisehir-based Europen, launched in 1965, produces PVC, aluminium and glass items for the construction and white goods industries.
 

Table: Major YTAK loans.

 

©2023 bne IntelliNews , source Magazine