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IFC SIGNS LOAN AGREEMENT WITH TURKISH GLASS PRODUCTS GROUP


Michael Stopford
Press Release No. 97/38
Phone: (202) 458-4698
Fax: (202) 676-0365
E-mail: MStopford@Worldbank.org


LONDON, UNITED KINGDOM, Oct. 18--The International Finance Corporation (IFC) today signed a DM108 million loan agreement with the Sisecam Group of Turkey to assist in the financing of a US$334 million equivalent expansion and modernization program.

Sisecam is a leading European producer of a wide range of glass products, including flat glass, mechanical and handmade tableware, containers, glass fibre and chemicals. The IFC financing will support a major investment program at Mersin in South Eastern Anatolia, involving construction of a new float glass line, a new tableware line and expansion of Sisecam's existing container capacity in Anadolu Cam Sanayii A.S. A part of the financing will also support the construction of a captive power plant to supply electricity to Trakya Cam Sanayii A.S. (float glass) and Kirklareli Cam Sanayii A.S. (mechanical tableware), located at Kirklareli, Thrace, in Western Turkey. Finally, the financing will support a major modernization and expansion of Cam Elyaf Sanayii A.S.'s glass fibre production capacity at Cayirova. The expansion of Sisecam's capacity is required to meet the rapid growth in domestic Turkish demand and to maintain Sisecam's established export markets.


IFC is providing DM46 million on its own account and has arranged a syndicated loan aggregating DM62 million with Berliner Bank, Credit Lyonnais, Union Bank of Switzerland, WestLB Group, Banque Francaise du Commerce Exterieur and Morgan Guaranty Trust Company.


IFC's Europe Department Manager responsible for Turkey, Mr. Khosrow Zamani, noted that " in addition to supporting an important and competitive Turkish industrial producer - thereby contributing to exports and overall economic stability - IFC's investment will help generate employment (estimated at about 900 new jobs) centred on a relatively less developed region of the country."


IFC is a member of the World Bank Group and is the leading multilateral source of equity and loan finance for private sector projects in the developing world.