Istanbul, Turkey, April 6, 2004—The
International Finance Corporation, the private sector arm of the World
Bank Group, will provide a $65 million loan to Opet Petrolcülük, an importer
and retail distributor of petroleum products in Turkey. The financing
will support the construction of a greenfield marine terminal and tank
storage facility and the acquisition of a small terminal, expanding Opet’s
oil products storage capacity and retail distribution network.
IFC's investment is part of an $85 million financing package comprising
loans from FMO and DEG for $10 million each. The loan financing consists
of $25 million for IFC's own account and a syndicated B-loan with six other
commercial banks for $40 million. The tenor of the B-loan sets a new benchmark
for Turkey since the late 1990s and will help structure upcoming financings
for other Turkish corporates.
“IFC will support a profitable, independent Turkish player in the petroleum
distribution sector at an important phase in the company’s development,”
said Rashad-Rudolf Kaldany, IFC director for oil, gas, mining and chemicals
investments. “Opet’s retail network is predominantly dealer-owned
and operated, in most cases by independent families and entrepreneurs.
IFC is working with the company to find new ways to professionalize
the dealer network through financial support and training,” he added.
Khosrow Zamani, IFC director for Southern Europe and Central Asia, noted,
"This investment highlights IFC's commitment to Turkey’s private
sector development, which is the main engine of growth and the major creator
of new jobs.” He added, "The proposed project will position the company
well to meet the challenges of an increasingly liberalized fuel market.
The new terminals will enable Opet to enter into or expand operations
in fuel trading, marine bunkering, fuel and chemical storage, and other
IFC's portfolio in Turkey, including amounts mobilized from commercial
banks, stood at $968.5 million as of end-December 2003. Turkey is the third
largest exposure in IFC's portfolio of investments. IFC's continuous
activity reflects the improving investment climate in Turkey, greater opportunities
in an increasingly broad range of sectors, and recovering private sector
IFC’s mission is to promote sustainable private sector investment in developing
countries, helping to reduce poverty and improve people's lives. IFC
finances private sector investments in the developing world, mobilizes
capital in the international financial markets, and provides technical
assistance and advice to governments and businesses. From its founding
in 1956, IFC has committed more than $37 billion of its own funds and arranged
$22 billion in syndications for 2,990 companies in 140 developing countries.
IFC’s committed portfolio at the end of FY03 was $16.8 billion.