May 7 (SeeNews) - Turkish iron and steel producer Kardemir Karabuk Demir Celik Sanayi ve Ticaret [BIST:KRDMA] said it signed a 21.2 million euro ($27.8 million) investment credit agreement with Germany's KfW Ipex Bank for capacity expansion.
Kardemir will use the funds to finance the capacity expansion of its basic oxygen furnace (BOF) shop for which it contracted Germany's SMS Siemag, the Turkish company said in a filing to Borsa Istanbul Thursday.
SMS Siemag, which is part of the SMS group of companies active in plant construction and mechanical engineering for the metals sector, will boost the volume of the two installed converters and supply a third converter for the BOF shop in northern Turkey's Karabuk province, the company said in a statement in September 2012.
The loan will be repaid in 10 years after the start of operation of the facility.
KfW Ipex Bank is the export and project financing arm of German development bank KfW.
($ = 0.763 euro)