Koc Group Partially Repays Debt, Cuts Interest

Koc Holding AS, the parent of Turkey’s biggest group of companies, and its five units made early repayments on dollar and euro loan debts and received 100 basis-point discounts on remaining hard currency debts based on market conditions and future plans.

Koc Holding repaid $8 million and 100.5 million euros of loans before their maturation dates after talks with a group of domestic and foreign banks, it said in a filing with the Istanbul Stock Exchange today. Interest rates on a remaining $112 million of debt were reduced to 225 basis points from 325 basis points over the benchmark and to 175 basis points from 275 basis points over the benchmark on a 111 million euro debt, Koc said. The loans were received a year ago, it said.

Ford Otomotiv Sanayi AS, Ford Motor Co.’s venture with Koc, repaid $4 million of a 39-month loan obtained by the group in January 2010 and had costs lowered on the remaining $16 million, as well as on a 27-month 25 million euro debt, it said in a statement to the bourse.

Koc’s liquefied propane gas distributor Aygaz AS said it closed all of its debt from a 27-month, 53 million-euro loan it got under the same January 2010 agreement. Tractor maker Turk Traktor & Ziraat Makineleri AS repaid all of its 40 million euro debt, and bus and military vehicle manufacturer Otokar Otomotiv & Savunma Sanayi AS also closed its 7.5 million euro financing, they said in statements to the bourse.

The group’s canned and frozen food producer Tat Konserve Sanayii AS got a 100 basis-point cut on interest on its $30 million of outstanding debt, it reported to the bourse.

To contact the reporter on this story: Ercan Ersoy in Istanbul at eersoy@bloomberg.net

To contact the editor responsible for this story: Aydan Eksin at aeksin@bloomberg.net

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