Turkish banking-to-automotive group Oyak has secured a US$1.6bn loan from a group of banks to finance its purchase of domestic steel maker Erdemir, the group said in a statement.
"This represents the first long-term acquisition financing in support of Turkey’s pending privatization deals and is a significant landmark financing deal in the Turkish financial markets," said Oyak.
Oyak made the highest bid of US$2.77 billion in an auction in October for Erdemir, trumping international giants such as Arcelor and Mittal Steel. The Supreme Privatization Board (ÖYK) approved the sale of a 46.12 per cent stake in Erdemir to Oyak earlier this month.
"Erdemir is the second-largest industrial company in Turkey and through this acquisition Oyak becomes one of the large industrial groups in the country," Oyak said.
Oyak, the army pension fund, has investments in the automotive, cement, financial and service sectors. Among its high-profile investments is an automotive joint venture with French car maker Renault.