Istanbul, Turkey February 24, 2004 -
The International Finance Corporation (IFC), the private sector financing
arm of the World Bank Group is providing a $40 million loan to Borusan
Holding A. ª. This IFC loan to the Holding Company
is expected to help Borusan Group improve its financial and operational
performance and implement a number of quality control initiatives, and
strengthen corporate governance across the Group.
The Holding represents the flagship operating companies in the pipe segment,
distribution, high value added steel manufacture, logistics services and
technology sectors. In 1994, IFC financed Borusan’s steel pipe operations
and provided long-term loans and equity financing for Borçelik Celik Sanayii
ve Ticaret A.ª. a producer of cold-rolled coils.
“Borsuan is a leading corporate with a strong position and IFC’s
financing is an important vote of confidence in the dynamic Turkish private
sector”, commented Mr. Khosrow Zamani, Director of IFC’s Southern Europe
and Central Asia Department. IFC’s loan is structured innovatively to
allow the Holding to leverage profitably its key operating subsidiaries.
The loan will enable Borusan Holding to restructure its balance sheet and
improve its liquidity position. It will also help Borusan Holding to prepare
selected Group companies for successful listing on Istanbul Stock Exchange
in the near future.
The International Finance Corporation is a member of the World Bank Group.
IFC’s mission is to promote sustainable private sector investment in transition
economies, helping to reduce poverty and improve people's lives. IFC finances
private sector investments in the emerging markets, mobilizes capital in
the international financial markets, helps clients improve social and environmental
sustainability, and provides technical assistance and advice to governments
and businesses. Since its founding in 1956 through FY03, 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 worldwide committed
portfolio as of FY03 was $16.8 billion for its own account and $6.6 billion
held for participants in loan syndications.
Turkey joined IFC in 1956 and is one of the top exposures in IFC’s global
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 demand.