ING and BNP Paribas have arranged a €69 million ( US$72.16 million ) loan to Turkish company Kroman Celik Sanayii Anonim Sirketi for the acquisition of a state-of-the-art electric arc furnace from Gruppo Danieli.

ING Bank, via a branch of German unit ING-DiBa, acted as mandated lead arranger, bookrunner and documentation bank. BNP Paribas acted as mandated lead arranger, bookrunner and agent. Watson Farley & Williams was legal adviser to the lenders.

The loan is guaranteed by Italian export credit agency SACE.

Kroman is a Turkish manufacturer and dealer of iron and steel products. It is part of Yucel Group, which produces a wide range of products for the Turkish steel industry. Italian multinational Gruppo Danieli is one of the world’s three largest manufacturers of machines and plants for the metallurgical industry.

The financing will help Kroman’s alignment with the European Union‘s Carbon Border Adjustment Mechanism ( CBAM ), which is set to take effect in 2026. An electric arc furnace consumes 15% less energy than typical industry standards.