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IFC Backs Turkish Glass Manufacturer with $97.5 Million Loan


Elika Trifonova
Phone: +202-458-8357

Fax: +202-974-4384                

Email:
etrifonova@ifc.org


Washington DC, March 31, 2003—The International Finance Corporation (IFC), the private sector financing arm of the World Bank Group, today signed an agreement to invest US$97.5 million equivalent in Turkiye Sise ve Cam Fabrikalari A.S. Group (Sisecam) of the Republic of Turkey. The investment will assist in the financing of Sisecam’s $150 million expansion and modernization program in the country.


“It is critical for international financial institutions to continue to support viable private sector enterprises in Turkey at a time of major uncertainty in the region.  The IFC financing is an important vote of confidence in both Sisecam and the Turkish manufacturing sector,” Khosrow Zamani, Director of IFC’s Southern Europe and Central Asia Department, said.  He added, “IFC is pleased to be associated with this Turkish company particularly because Sisecam is a major  employer in the country.



Sisecam is a leading Turkish glass manufacturer and exporter.  It manufactures a wide range of glass products, including flat glass, mechanical and handmade tableware, containers, glass fiber and chemicals.  It was established in 1935 and is one of the principal industrial manufacturing enterprises in Turkey, with a work force of over 12,500 people.


IFC will provide Sisecam with a corporate loan of $97.5 million equivalent, which consists of an A-loan of $60 million equivalent for its own account and a syndicated B-loan of $37.5 million equivalent with ABN AMRO Bank N.V., Citibank, N.A., Crédit Lyonnais, Fortis Bank N.V., and Natexis Banques Populaires.  The original syndicated B-loan, which was structured as a $30 million equivalent facility, was oversubscribed in the market by $7.5 million equivalent.



A. Dogan Arikan, President of the Sisecam Group, said, “Continued support from IFC is extremely important for Sisecam because we have a long-standing relationship with IFC.  We turn to IFC for key and timely advice and financial support.  IFC has helped our international expansion by financing the Sisecam plants in the Republic of Georgia and the Russian Federation.”



Richard Ranken, Director of IFC’s Global Manufacturing and Services Department, said, “IFC’s involvement has proven instrumental in mobilizing long-term financing from the international banking community at this time of uncertainty.  Our investment reflects IFC’s ongoing commitment to an existing client and will help Sisecam enhance its operational efficiency and competitive position as an exporter.”  He added, “ In addition to playing our role of  long-term financier, IFC was instrumental in encouraging Sisecam to institutionalize environmental improvements corporate-wide.”



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 has 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.