On December 31, 2014, MIGA issued a guarantee of $57.7 million covering a shareholder loan from RCI Banque SA of France (RCI) to Orfin Finansman AS in Turkey. The coverage is for a period of up to seven years against the risk of transfer restriction.
The project involves the expansion of operations of Orfin Finansman AS in Turkey financed through a €50.0 million shareholder loan from RCI, a wholly owned subsidiary of Renault Group specializing in financing activities for the Renault Group and Nissan Group brands in the countries where they operate. Orfin provide loans to both individuals and corporate customers for the purposes of acquiring Renault and Dacia vehicles, insurance to provide coverage to creditors in case of unforeseen events, and extended warranties for the sale of new cars.
The shareholder loan aims at improving the liquidity position of Orfin and allowing the company to increase the competitiveness of interest rates. This should result in more affordable financing options for clients. The project is also expected to enhance access to credit for individuals and small and medium-size enterprises across Turkey.
MIGA’s support for this project is aligned with the World Bank Group’s Country Partnership Strategy for Turkey, which calls for deeper and broader financial markets to promote investment and competitiveness.