Istanbul, Turkey, December 19, 2013—IFC,
a member of the World Bank Group, is supporting the steel industry and
the power sector in Albania through a long-term financing facility for
a leading iron and steel producer that will improve competition in the
power sector and encourage economic growth.
IFC’s eight-year €106 million debt facility will finance Kurum International’s
acquisition and rehabilitation of four recently-privatized hydroelectric
power plants in Albania, which will then provide sustainable and cost-effective
energy to the company’s steel plant. The project will help the steel plant
improve its competitiveness by lowering its electricity costs, bringing
new investors into Albania’s energy sector, and improving the private
sector’s access to reliable energy.
“I believe that incorporating hydro energy generation to our existing
manufacturing processes will strengthen Kurum Group’s competitiveness
in Albania and neighboring Balkan countries,” said Hasmet Bedii Kurum,
Chairman of Kurum Holding, parent company of Kurum International.
The debt facility includes a €33 million loan for IFC’s own account and
€73 million of financing syndicated to a diverse group of commercial banks
and developmental finance institutions. The financing includes B Loans
of €27 million from FMO (Netherlands Development Finance Company), and
€14 million from Odeabank, the Turkish subsidiary of Bank Audi (Lebanon).
It includes parallel loans of €18 million from the Black Sea Trade and
Development Bank, €7 million from Banka Kombetare Tregtare, a local bank
in Albania, and €7 million from Raiffeisen Bank Albania (which is also
acting as the collateral agent).
"This project demonstrates IFC’s commitment to support Albanian power
sector and economic integration by facilitating cross-border investments
within the region,” said Guy Ellena, IFC Director, Manufacturing, Agribusiness,
and Services in Europe and the Middle East and North Africa. “It is also
a good example of cooperation among commercial banks and developmental
IFC’s committed investment portfolio in Albania as of the end of June
2013 is $213 million. In fiscal year 2013, IFC invested $207 million in
Albania, including $146 million mobilized from our partners. IFC’s advisory
services in Albania aim to attract private sector participation in infrastructure
projects and improve the investment climate, the performance of private
sector companies, and access to finance.
Kurum International is a member of the Kurum Group and the only integrated
industrial enterprise involved in iron and steel production in Albania.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly US$25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information please
About Kurum Holding
Controlled by the Turkish Kurum Family since the mid-1970s, Kurum Group
has been operating in the iron and steel industry with the vision to expand
its operations to other related businesses in Turkey and the Balkans. Kurum
Holding has established various companies and currently employs more than
1,100 people in Turkey and the Balkans. Based in Albania, Kurum International,
located in Elbasan, is an integrated steel and iron company that operates
a mill with 510,000 tpa of billet production capacity. Kurum International
enjoys the exclusivity of being the first and only operator of an integrated
single iron and steel production plant in the country.