In line with its total investment target of $3 million for the 2008-2009 period, including investments worth $2 million in the energy sector, giant Turkish group Borusan Holding has obtained a syndicated loan of $170 million in order to strengthen its logistics services and to finance its new investment projects in the energy field, in which it plans to launch a new business branch.
The syndicated loan has been obtained from a consortium consisting of eight banks; ABN AMRO Bank, Denizbank, Fortis, Garanti, Finansbank-National Bank of Greece and Société Générale, Akbank and Citibank, with the last two banks providing the highest levels of credit.
Borusan CEO Agah Ugur said that they are taking steps towards achieving their turnover target of $5 billion in 2010, adding that the energy sector will be one of the most important investment fields of the Group. Mr Ugur declared, "We will invest more than $2 billion in the energy sector by the year 2010."
Commenting on the Group's steel sector investments, Mr. Ugur spoke in particular about the Group's investment for a hot rolling mill for flat steel products, which it plans to carry out in association with ArcelorMittal. Mr. Ugur said that the cost of the project, for which the foundation will be laid this September, was initially projected at $500 million, but that it currently stands at $850 million. However, he went on to say that, with the price increases registered in the global markets, the total value of the investment might reach up to $1 billion. Mr. Ugur said that the investment would be financed by Borusan and ArcelorMittal, adding, "We will seek credit from the market again for the remainder."