Press Releases

IFC Supports Major Exporter in Turkey with $50 Million Loan

Elika Trifonova
Phone:  (202) 458 8357

Fax:  (202) 974-4384


Washington, D.C., December 17, 2002—The International Finance Corporation (IFC), the private sector development arm of the World Bank group, has provided a US$50 million loan to Beko Elektronik A.S., a leading Turkish consumer electronics manufacturer, to finance growing permanent working capital needs as it expands its role in European markets. The investment is part of IFC’s ongoing support for Turkey’s private sector to expand production, replenish working capital and boost export revenues.

Khosrow Zamani, Director of IFC’s Southern Europe and Central Asia Department said that it is critical for the international financial institutions to continue to support private sector enterprises in Turkey in times when financial flows to the country have been greatly reduced after the recent financial crisis. This financing is important as it represents the first corporate sector, long-term syndication by IFC since spring 2001, where it has mobilized five-year funding from the international banking community. In the midst of economic stagnation and increased unemployment resulting from structural reforms, Beko Elektronik’s role as a stable provider of direct and indirect labor opportunities becomes increasingly important, he added. As Beko embarks on a globalization strategy, this project will also have strong environmental impact and help Beko to be a global environment leader supplying to the EU while taking advantage of its geographical proximity to Europe.

The loan facility consists of a $25 million for IFC’s own account and a syndication of up to $25 million from private commercial banks, signed on December 17, 2002. IFC, as the Arranger of the syndicated loan for the project, has attracted financing from five leading international banks: Citibank N.A., ABN AMRO Bank N.V., Credit Agricole, Credit Lyonnais S.A, and Fortis Bank. This should mark the beginning of a positive trend wherein strong corporates with reasonable prospects can begin to attract long-term commercial finance.

Beko, one of the largest television sets manufacturers in Turkey, views this investment as an important step forward in implementing its strategy of becoming a leading TV sets supplier to Europe while gradually changing its product mix towards high value-added products. Beko is one of Turkey’s leading manufacturers of consumer electronic products, with annual revenues of $346 million in 2001, of which more than 50 percent comprised of export sales to 46 countries concentrated in Europe, CIS, and the Middle East.

IFC has committed over $300 million to corporate and financial sector in Turkey over the last year. IFC’s investments in Turkey are diversified in metals, cement, paper, glass, construction and building materials, textiles, consumer durables, electronics and financial 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 developing world, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses. Since its establishment in 1956, IFC has committed more than US$34 billion of its own funds and arranged US$21 billion in syndications for 2,825 companies in 140 developing countries. IFC’s committed portfolio at the end of FY02 was US$15.1 billion for its own account and US$6.5 billion held for participants in loan syndications.

Beko Elektronik A.S.