Lovells advises Ford Romania in relation to its €1.35 billion CO2 reduction project financing

Lovells has advised Ford Romania in relation to a €400 million loan forming part of its €1.35 billion CO2 emissions reduction project.  The loan was financed by the European Investment Bank ("EIB") and guaranteed in part by the State of Romania.

This deal comes at a crucial time for Ford and the automobile industry as a whole. The €400 million loan, part of the EIB's long-term economic development and clean transport investments, will allow Ford to finance its infrastructure and production projects to manufacture environmentally-friendly cars and lower carbon emissions by expanding and refurbishing its car assembly plant located in Craiova, Romania.  The EIB has also approved in principle a loan of a further €200 million to finance research, development and innovation in environmentally-advanced technologies for low fuel consumption vehicles and engines. 

The Republic of Romania is providing a State guarantee for 80% of the loan under the European Commission’s temporary framework for State aid measures, which gives Member States additional scope to facilitate access to financing in the current economic and financial crisis.

The Lovells team was led by global Capital Markets Practice Area Partner, Sharon Lewis with senior associate Reza Mulligan in Paris.

Commenting on the deal, Sharon Lewis said:

"We are delighted to advise our long-standing client, Ford in relation to this new and exciting project which forms part of Ford's ongoing investment strategy in Europe during a time of difficult market conditions for Europe's car makers."

About Lovells

With over 3,000 people operating from 27 offices in Asia, Europe and the United States, Lovells is one of the world's leading international law firms. From 1 May 2010, Lovells LLP and Hogan & Hartson LLP will combine to form Hogan Lovells. 

The combination is subject to the firms obtaining the necessary regulatory clearances. We advise many of the world's largest corporations, financial institutions and governmental organisations.  We regularly act on complex, multi jurisdictional transactions as well as some of the most high profile commercial disputes. For more information about Lovells, visitwww.lovells.com