The growth market of Turkey: KfW IPEX-Bank is financing the export of German equipment for steel manufacturer Kardemir

Frankfurt am Main (ots) -

- ECA-covered loan for around EUR 140 million with a term of 12
years
- Largest order in German exporter Schuler's company history;
further deliveries from Italy
- Indirect support to expand the Turkish infrastructure
- Follow-up financing as part of a large modernisation and
expansion programme

KfW IPEX-Bank is financing the export of an ultra-modern
production line for the manufacture of train wheels in Turkey. The
borrower is Turkish company Kardemir Karabük Demir Çelik Sanayi ve
Ticaret A.S. (Kardemir), the first integrated Iron and Steel plant
which was established in 1937 and the only rail manufacturer in
Turkey and also in the region. The plant exporter is the traditional
German press manufacturer Schuler from Göppingen, which is posting
the largest individual order in its company history with a volume of
more than EUR 90 million. "The Turkish economy is growing, and along
with it, the country's role as a logistics hub between Europe, Asia
and the Middle East. German and other European suppliers, which can
provide direct or indirect support in the infrastructure sector, are
presented with fantastic sales opportunities here - business that we
are happy to assist with as a financing partner with country-related
expertise," explains Markus Scheer, Member of the Management Board of
KfW IPEX-Bank, at the contract signing ceremony.

In total, KfW IPEX-Bank is providing Kardemir with a loan for
around EUR 140 million. The financing encompasses a term of 12 years
and cover from both the German company Euler Hermes and Italy's SACE.
After all, in addition to the train wheel production line and
auxiliary plants supplied by Schuler, Kardemir is also using the
funds to finance the purchase of a complete bar and wire rod mill,
exportet from Italy.

The deliveries are key components of the ambitious modernisation
and expansion programme, which Kardemir would like to use to boost
its annual production capacity from 1.1 Mt to 3.3 Mt and to
strengthen its rail division. Kardemir is already producing rails and
points for high-speed rail tracks, which the Turkish state is
currently very keen to expand. According to information provided by
the government, Turkey's entire rail network should be doubled by
2023, stretching across a length of 25,000 kilometres.

Kardemir is an important customer in the steel segment for KfW
IPEX-Bank. Indeed, back in April 2013, KfW IPEX-Bank financed a basic
oxygen furnace for the factory's eco-friendly exhaust gas
purification plant as part of the modernisation and expansion
programme.

About KfW IPEX-Bank GmbH

Within the KfW Group, KfW IPEX-Bank is responsible for
international project and export finance. Its function of providing
financing to boost the German and European economy is derived from
the legal mandate assigned to KfW. It offers medium- and long-term
financing to support key export industries, to develop economic and
social infrastructure and to fund environmental and climate
protection projects. KfW IPEX-Bank operates as a legally independent
group subsidiary and plays a major role in fulfilling KfW's
promotional mission. It is represented in the most important economic
and financial centres across the globe.

Pressekontakt:
KfW IPEX-Bank GmbH, Palmengartenstraße 5-9, 60325 Frankfurt
Pressestelle: Thomas Krick, E-Mail: thomas.krick@kfw.de
Tel. 069 7431 8454, Fax: 069 7431 9409, E-Mail:
info@kfw-ipex-bank.de,
Internet: www.kfw-ipex-bank.de