Erciyas Çelik Boru, a subsidiary of Erciyas Holding, one of Turkey’s most important investment groups, issued its first lease certificate with a maturity of 177 days, amounting to TL 75 million. Erciyas Steel Pipe, which has received more than twice the amount of export demand, aims to create a positive impact on the increase in turnover by creating project financing opportunities with this method.
Erciyas Çelik Boru made its first lease certificate issuance worth 75 million TL through the subsidiary of Albaraka Türk Participation Bank, Turkey’s first participation bank, to mediate third party lease certificate issuances, Değer Varlık Kiralama company.
“We aim to provide risk and cost optimization with this method”
Emre Erciyas, Chairman of the Executive Board of Erciyas Holding, made a statement on the subject: “As a company that is the leader of our country in its segment in steel pipe production and export, and one of the few companies in Europe, we care about resource diversity. Accordingly, we have successfully completed our first lease certificate issuance through Değer Varlık Kiralama, a reputable and competent institution in the market. While many investors demanded the issue, which we started with a maturity of 177 days, the size of the demand was more than twice the issue amount. We are very pleased with the interest shown by the market to us. With this method, we aim to optimize risk and cost by using alternative capital market instruments. We anticipate that this process will also be beneficial in terms of bridge financing and that it will positively reflect on the increase in turnover by creating project financing opportunities. In the upcoming period, we will achieve significant successes with new investments and collaborations.”
Having received an export limit of 300 million TL and using 75 million TL, Erciyas Steel Pipe aims to use the entire limit according to the suitability of market conditions.