Uzbekistan's state-owned carmaker UzAuto Motors and Credit Suisse AG London Branch signed an agreement on an international syndicated loan for up to 150 million euros, UzAuto Motors said on November 30.
As its debut in international syndicated loan market, this agreement has become a landmark deal for UzAuto Motors, the company said, adding that the funds will be used to finance investment projects, modernize production lines and increase working capital.
According to the Uzbek plant, which currently produces cars under the "Chevrolet" brand in alliance with the U.S. General Motors (GM), the borrowing will also help to launch the production of new GM models for developing countries on its automotive platform.
A syndicated loan is one that is provided by a group of lenders and is structured, arranged, and administered by one or several commercial banks or investment banks known as lead arrangers.
The syndicated loan market is the dominant way for large corporations in the United States and Europe to receive loans from banks and other institutional financial capital providers.
UzAuto Motors, the largest car manufacturer in Uzbekistan, with an annual production capacity of 300,000 vehicles, was formerly a GM-Uzbekistan joint venture and is currently owned by the state-run company Uzavtosanoat.
Credit Suisse Group AG is a global wealth manager, investment bank and financial services firm founded and based in Switzerland. Headquartered in Zürich, it maintains offices in all major financial centers around the world and is one of the nine global "Bulge Bracket" banks providing services in investment banking, private banking, asset management, and shared services.
