Press Releases

IFC Supports Turkish Household Appliance Manufacturer with $27 Million Loan

In Washington, DC:
Elika Trifonova

Phone: +202 475 8357 - Fax: +202 974 4384


Washington DC, May 9, 2003—The International Finance Corporation today signed an agreement to invest up to $27 million equivalent in Arçelik, a Turkey-based home appliance leader.   The agreement is signed by IFC’s executive vice president Peter Woicke  in Istanbul, Turkey. Peter Woicke, said, “IFC has a long-standing relationship with Arçelik dating back to early 1990s and IFC is particularly pleased to support Arcelik’s international expansion plans”. Arcelik, a household brand name in Turkey, is entering the international arena, through its first production plant in Eastern Europe. The investment will enable Arcelik to acquire and modernize Arctic, a Romanian producer of refrigerators.

Khosrow Zamani, director of IFC’s Southern Europe and Central Asia Department, said that “part of IFC’s strategy in Turkey is to support viable investments of internationally competitive Turkish enterprises”. He added, “This investment fits well with IFC’s strategy. Furthermore, Arçelik’s role as a stable employer and a provider of labor opportunities at the small and medium enterprises, will be extended to neighboring countries.”

Arçelik is Turkey’s home appliance leader with consolidated sales of about $1.6 billion in 2002, of which nearly 50 percent comprised of exports. In recent years, as part of its strategy to decrease its dependency on the domestic market and diversify its revenue base, Arçelik has increased its exports significantly. This strategy is critical in light of increasing global competitiveness and to secure a long-term, stable growth in the region. Arçelik was established in 1955 and is one of the largest private sector enterprises in Turkey, with a workforce of about 6,000.

Arçelik’s Chief Executive Officer Nedim Esgin noted that “Arçelik is working to become one of the best consumer durable goods companies in Europe and is taking steps towards becoming a global company. Arçelik was chosen to receive the Total Plant Management Excellence Award of World Total Productivity Management in 2002, presented by the Japanese Institute of Plant Maintenance. In addition, Arçelik’s international sales and marketing company in the U.K. received the “Supplier of the Year” award given by the Bridisco Group and Independent Electrical Retailer Magazine, owing to our success in our product range, quality, and delivery performance.”

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. Since its founding in 1956 through FY02, IFC committed more than $34 billion of its own funds and arranged $21 billion in syndications for 2,825 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY02 was $15.1 billion for its own account and $6.5 billion held for participants in loan syndications.