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TK / FIN - New aluminium foundry and new long-term financing of EUR 30 million to Componenta

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Componenta Corporation
Company Announcement

New aluminium foundry and new long-term financing of EUR 30 million to Componenta

Componenta Corporation    Stock Exchange Release 18.6.2015 at 9.00

Componenta Dökümcülük A.S. signed on 17 June 2015 a new 5½ year credit facility agreement of EUR 30 million. New credit facility consists of two separate loan agreements which are an investment loan of EUR 20 million and a revolving credit facility of EUR 10 million. As a consequence, the average maturity of the interest bearing debt portfolio of Componenta Dökümcülük will be further lengthened.

Componenta’s aluminium business segment has been the Group’s more profitable business. Componenta signed a substantial business contract in first quarter 2015 based on which Componenta will sell complex aluminium components worth more than EUR 100 million to European markets till end of 2025. In addition, Componenta has signed several others aluminium component contracts worth smaller amounts.

In order to grow in the aluminium business segment, Componenta has started construction of a new aluminium foundry in Manisa, Turkey. In the first phase the capacity will be increased by approximately 40% which makes it possible to increase the turnover from nearly EUR 40 million in 2014 to EUR 70 million. After this phase, the capacity and turnover can be further increased flexibly without any additional property investments to EUR 125 million by acquiring necessary aluminium foundry lines, and at the same pace as new business contracts will be signed. Componenta’s intention is to fully utilize the new aluminium foundry by end of present decade. With the new long-term financing, Componenta will strengthen its financial position and at the same time the financing of this new important investment is secured. In the first phase of the investment Componenta will invest in property, machinery and equipment total of EUR 25 million and this phase will carried out during the period of 2015 - 2017.

The counter-parties of the financing agreement are three same Turkish banks who also participated in the previous EUR 90 million club loan agreement in 2014; Türkiye Vakıflar Bankası T.A.O. Orhangazi/Bursa Branch (”Vakifbank”), Türkiye Halk Bankası A.Ş. Organised Industry Commercial/Bursa Branch (”Halkbank”), and Türkiye İş Bankası A.Ş. Bursa Corporate Branch (”Iş Bank”).

Source: Componenta.com

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