Karsan

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Karsan Otomotiv Sanayii ve Ticaret A.S. (“Karsan” or the “Company” - https://www.karsan.com/en), is a Turkish manufacturer of conventional and electric light commercial vehicles (LCVs) and buses. Karsan mainly manufactures Bozankaya branded electric buses, Menarinibus branded buses for Industria Italiana Autobus, and its own Karsan branded e-ATA, e-Ata Hydrogen, e-Jest, e-Atak, and autonomous-ATAK vehicles which are sold in more than 20 different countries (mainly in Europe). The company has three production facilities in Bursa and Hasanaga Organized Industrial Zones (OIZ), a research and development center located where in Hasanaga plant, and several sales and marketing subsidiaries in Turkiye, Italy, France and USA. Karsan is publicly listed at Borsa Istanbul (Istanbul Stock Exchange), and the major shareholder is Kiraca Holding. The company, in its Hasanaga plant produces all types of vehicles, ranging from automobiles to trucks to minivans to busses. The plant has a capacity to manufacture c. 55 thousand passenger vehicles and c. 10 thousand EV busses per year and occupies a total area of 200.000 m2 with a closed area of 90.000 m2. The company’s potential EV-bus manufacturing capacity can reach 12.150 units per annum, depending on product mix and specifications.The plant located in Bursa Organized Industrial Zone, manufactures tractor cabins, 12 m bus bodies and spare parts and provides cataphoresis services within the company and to outside customers as an industrial service. The plant occupies a total area of 29.000 m2 with ca. 20.000 m2 closed area.The third plant located in Hasanaga OIZ is a rented 10,000 m2 closed area for manufacturing bus body parts with an annual capacity of 4,500 units per shift. The proposed IFC investment is a EUR 35 million senior secured corporate loan to support Karsan in (i) refinancing Karsan’s transition to electric vehicles (EV) including the acquisition of EV-linked intellectual property rights from Bozankaya, a Turkish EV manufacturer; and (ii) financing working capital required for EV production and sales (the “Project”).