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
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.