Sarajevo, Bosnia and Herzegovina, July
18, 2013—IFC, a member of the World Bank Group, with the support of
the Government of Canada, is helping Turkey’s Sisecam Group enhance competitiveness
and cleaner production in its Bosnia and Herzegovina subsidiary, Sisecam
Soda Lukavac, a soda ash producer.
IFC will provide €24 million in financing to Sisecam Soda Lukavac, including
€7.5 million from the IFC-Canada Climate Change Program. The loan will
help the company improve resource and energy efficiency.
“IFC, an important financial partner
of Sisecam, has once again demonstrated its support and commitment to our
group,” said Prof. Dr. Ahmet Kirman, Vice Chairman and CEO of the Sisecam
“The confidence IFC has in us is expressed through its cooperation with
us on expansion projects in the region, an integral part of the group’s
In 2007, IFC provided a €24 million
loan to Sisecam to help finance the acquisition of Soda Lukavac, then a
loss-making state-owned enterprise. In 2010, IFC provided another €15
million loan to Sisecam’s subsidiary in Bosnia and Herzegovina. Sisecam
has been an IFC client for over 35 years with multiple investments, first
in Turkey, and then abroad as IFC helped finance the group’s expansion
in Bulgaria, Russia, the Balkans, and other countries in Europe and Central
Canada’s contribution was instrumental, helping to make the financing
package viable. “The global challenge of climate change requires
a global solution, and the Government of Canada is proud to support environmental
efforts such as these,” said Canada’s Environmental Minister, the Hon.
“Increasing energy efficiency and resource
utilization will provide Bosnia and Herzegovina with environmental and
economic benefits,” said Guy Ellena, IFC Director for Manufacturing, Agribusiness,
and Services for Europe, the Middle East and North Africa. “Our financing
is expected to help Sicecam Soda Lukavac become more resource efficient,
profitable, and competitive, while improving the quality of life for local
residents through reduced pollution.”
Bosnia and Herzegovina became a shareholder
and member of IFC in 1996. Since then IFC has invested $343 million in
the local economy, with particular focus on manufacturing and financial
markets. IFC has also invested in the country’s health sector, municipal
infrastructure, agribusiness, and construction. IFC offers advisory services
that aim to improve the investment climate in Bosnia and Herzegovina, encourage
the use of renewable energy, expand access to finance, and attract private
sector participation in the development of infrastructure projects.
About the IFC-Canada Climate Change
The IFC-Canada Climate Change Program promotes private sector financing
for clean energy projects. Canada’s financing to IFC for this program
is part of its overall fast-start financing contribution for 2010–2011.
Under the Copenhagen Accord, developed countries committed to provide fast-start
financing of almost $30 billion for 2010–2012 to support climate change
mitigation and adaptation in developing countries. As part of Canada’s
commitment to support climate change action in developing countries, Canada
is contributing 1.2 billion Canadian dollars in new and additional climate
change financing over three years (fiscals 2010-2013).
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, mobilizing capital in international financial
markets, and providing advisory services to businesses and governments.
In FY12, our investments reached an all-time high of more than $20 billion,
leveraging the power of the private sector to create jobs, spark innovation,
and tackle the world’s most pressing development challenges. For more
information, visit www.ifc.org.
For information about Sisecam Soda
Lukavac, visit http://www.sisecam.ba/.