Press Releases

IFC Supports International Expansion of Leading Turkish Household Appliance Manufacturer with EUR160 Million Loan

Georg Schmidt

Phone: +1 (202) 458-2934

Fax:      +1 (202) 974-4384


Washington DC, April 8, 2005 —The International Finance Corporation, the private sector arm of the World Bank Group, today signed an agreement to provide a EUR160 million loan to Aršelik, Turkey’s leading household appliance manufacturer and one of the five top players in the European market for white goods. The financing will be used for a corporate investment program, which will include the construction of a greenfield manufacturing plant in Russia.

The financing comprises a EUR80 million loan for IFC’s own account and a five-year syndicated loan of EUR80 million that IFC has arranged for Citibank, ABN AMRO Bank, Calyon, HypoVereinsbank, ING, SociÚtÚ GÚnÚrale, and West LB. The investment will enable Aršelik to modernize its facilities, maintain its cutting-edge product development, and expand in the domestic and international markets, especially in Russia.

IFC’s Acting Executive Vice President Assaad Jabre said, “This investment fits well with IFC’s strategy to support the growth of internationally competitive Turkish enterprises as they expand their operations in Turkey and in other emerging markets. The loan is one of IFC’s largest commitments in Turkey to date, and it reflects our successful and long-standing relationship with Aršelik and the whole Koš group.”

Koš Holding’s Chairman Mustafa Koš noted, “Aršelik, the flagship of the Koc Group, is well on its way to becoming one of the best consumer durable goods companies in Europe and is taking steps towards globalization. Aršelik is currently celebrating its fiftieth anniversary and takes pride in its innovative products and excellent production management, which have received many international awards.”

Established in 1955, Aršelik had consolidated sales of $3.7 billion in 2004, with a workforce of about 11,000. In an effort to diversify its revenue base and address increasing global competitive pressure, the company has raised its exports significantly, which account for almost 50 percent of the sales. Aršelik is a member of the Koš Group, one of Turkey's leading conglomerates with activities in sectors including automotives, household appliances and electronics, financial services, food, retailing, energy, and information technology. Founded in 1926, the group reported solid financial results in the first nine months of 2004, with total assets of $12.4 billion, consolidated sales revenues of $10.5 billion, and net profit of $277 million. IFC has invested in projects of the Koc Group across a wide range of sectors in Turkey, Russia, Romania, Kazakhstan and Azerbaijan.

Turkey accounts for about 6 percent of IFC's global investment commitments, representing IFC’s fifth-largest country exposure. IFC's committed portfolio to the country, including amounts mobilized from commercial banks, amounted to $1.1 billion as of December 2004.

The mission of IFC 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, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956, through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of end of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.

Asli Alemdaroglu
Phone: +90(212)3143010
Fax: +90(212)3143460