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 Arçelik, 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, Société Générale,
and West LB. The investment will enable Arçelik 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 Arçelik and the whole Koç group.”
Koç Holding’s Chairman Mustafa Koç noted, “Arçelik, 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. Arçelik
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, Arçelik 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. Arçelik is a member of the Koç 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.
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