Karsan obtains financing to boost EV production

LONDON

The International Finance Corporation (IFC) is helping a leading Turkish automotive manufacturer, Karsan, boost its production of electric vehicles (EVs), strengthen the sector’s competitiveness, increase exports and create jobs.

IFC is providing a 35 million euro loan to the company, of which 25 million euros will be used to fund its working capital needs and 10 million euros to support its acquisition of intellectual property rights and technological know-how around electric buses.

Due to its lengthy order-to-delivery periods, the company has higher working capital requirements than passenger car EV companies, IFC said in a statement, adding that its investment will also help bolster Türkiye’s transition to net zero.

“The investment in EVs is part of IFC’s efforts to help further develop Türkiye’s automotive and manufacturing industries, boosting exports and strengthening the country’s position in global value chains.”

With Türkiye possessing the necessary infrastructure and skills to produce EVs and their components, it has the potential to become a regional EV hub, it said.

IFC’s investments in Türkiye have reached nearly $11 billion in the last decade alone.

Türkiye represents IFC's third-largest country exposure globally, with a committed portfolio of close to $4.9 billion as of November 2023.