Istanbul, February 18, 2005—The
International Finance Corporation, the private sector arm of the World
Bank Group, has signed an agreement to acquire a minority stake in the
share capital of Intercity, one of the leading vehicle fleet management
companies in Turkey. This follows an earlier round of equity financing
led by Turkven Private Equity Fund, a Turkish private equity fund in which
IFC has invested.
IFC’s investment marks another important step in Intercity’s transformation
since its founding in 1992 from a single person operation to a company
with approximately 20 percent market share, 90 employees, 6,000 cars under
management, and more than $20 million in annual revenue. The financing
will strengthen Intercity’s long-term leasing of its vehicle fleet to
a variety of private sector enterprises.
Khosrow Zamani, IFC’s director for Southeastern Europe and Central Asia,
said, “IFC is pleased to support Intercity’s transformation from a medium-sized
operation into one of Turkey’s leading operational leasing companies.
We are committed to helping Turkey’s small and medium enterprises grow
and to providing long-term financing for the local financial sector."
Jyrki Koskelo, IFC’s director for Global Financial Markets, added, “IFC
has had a strong institution-building role in the development of Turkey’s
financial markets. In strengthening one of the leading local operational
leasing companies, we are continuing our support of the country’s private
Vural Ak, Intercity’s chief executive officer, noted, “We are extremely
pleased about the successful partnership we have developed with IFC. They
fully understand and appreciate our vision to create the leading vehicle
operational leasing company in Turkey and have demonstrated their support
through this very timely equity investment. We thank IFC for the confidence
placed in us and look forward to continuing our good cooperation.”
Turkven managing director Seymur Tari added, “Intercity is well placed
to leverage its market leadership and offer competitive prices driven by
economies of scale. The company has established a good reputation among
its customers. With the support of IFC, we will continue to play an important
role in bringing international capital to Turkish companies like Intercity.”
The mission of IFC (www.ifc.org)
is to promote sustainable private sector investment in developing countries,
helping to reduce poverty and improve people’s lives. IFC finances private
sector investments in the developing world, mobilizes capital in the international
financial markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
From its founding in 1956 through FY04, IFC has committed more than $44
billion of its own funds and arranged $23 billion in syndications for 3,143
companies in 140 developing countries. IFC’s worldwide committed portfolio
as of FY04 was $17.9 billion for its own account and $5.5 billion held
for participants in loan syndications.