WASHINGTON, D.C., June 26 -- The International
Finance Corporation (IFC) has signed an investment agreement to provide
US$80 million for an expansion program of Arçelik A. S., a Koç Group company.
Arçelik, the largest private sector company in Turkey, manufactures a wide
range of consumer durables. The company is the market leader in the white
goods sector in Turkey and has an average annual sales revenue of US$1
billion over the last four years. The expansion program is to improve productivity
and product range in the company's refrigerator and washing machine plants
and to modernize the existing dishwasher, air conditioner and vacuum cleaner
production lines. The total project cost is US$230 million.
The Koç Group, a Fortune Global 500 corporation with US$11.5 billion in
sales, is the largest conglomerate in Turkey and is now celebrating its
70th year. The group comprises 92 consolidated companies and is a major
player in the automotive industry, consumer goods, energy, mining, construction,
international trade, finance, and tourism sectors. Arçelik, the flagship
of the Koç consumer durables group, is one of the top ten household appliance
producers in Europe.
"The IFC financing of this project is a path-breaking 10 year loan
which is an important vote of confidence in both the company and the Turkish
manufacturing sector" said Mr. Edward Nassim, Director of IFC's Europe
Department. "Companies such as Arçelik have shown that they are here
for the long term, despite the often extreme volatility of the macro-economic
situation in Turkey".
IFC is providing US$40 million for its own account and US$ 40 million is
being provided by a group of participating banks including Credit Lyonnais
S.A., Bank of Tokyo-Mitsubishi, Ltd., The Sakura Bank, Limited, WestLB
Group, Societe Generale and Citibank, N.A.
IFC, a member of the World Bank Group, is the largest multilateral source
of equity and loan financing for private sector projects in developing