TBILISI, GEORGIA, June 2, 1999 — In the
largest foreign investment outside the oil sector in Georgia, the European
Bank for Reconstruction and Development (EBRD) and the International Finance
Corporation (IFC) are providing US$17.6 million (EUR 16.6 million) in financing
to Saaktsio Sazogadoeba MINA (Ksani), a glass bottle manufacturer. The
joint financing will help Ksani to increase exports, enhance energy efficiency
and raise environmental practices to international standards.
The EBRD and IFC are each making a US$2.5 million (EUR 2.3 million) equity
investment and a US$6.3 million (EUR 6.0 million), 6.5-year secured loan.
The total costs of the project are estimated at US$27.4 million (EUR 25.9
"This project is a good boost for Georgia. It will help the country
to attract much-needed foreign direct investment and encourage more private
entrepreneurship," said Olivier Descamps, Director of the EBRD's Georgia
team. "This is the EBRD's second investment in Georgia's private industrial
sector," he continued. "The project demonstrates to other investors
the Bank's continued willingness to finance private companies with strong
Edward Nassim, an IFC Director for Europe, said the Ksani project demonstrates
the critical role that the private sector can play in the economic recovery
of Georgia. "It also provides a good example of how IFC and
the EBRD can combine forces when both are needed to help get an investment
off the ground."
Ksani, located outside of Tbilisi, was constructed in 1986 and employs
more than 300 people. Since October 1997, the company has been owned by
Turkiye Sise ve Cam Fabrikalari AS (Sisecam), a leading Turkish glass manufacturer.
"The support of IFC and the EBRD will enable Sisecam to extend its
activities in Georgia and in the region," said Adnan Çaglayan, President
of Sisecam. "The financing will help Ksani to modernize its production
equipment and to complete its privatisation process. It will also provide
permanent working capital to the company."
The EBRD was established in 1991 following the collapse of communism, to
aid the transition from centrally planned to market economies in central
and eastern Europe and the Commonwealth of Independent States (CIS). The
EBRD is owned by 60 shareholders: 58 countries, the European Investment
Bank and the European Community, and operates with EUR 20 billion in authorised
The mission of IFC, part of the World Bank Group, is to promote private
sector investment in developing countries, which will reduce poverty and
improve people's lives. IFC finances private sector investments in
the developing world, mobilizes capital in the international financial
markets, and provides technical assistance and advice to governments and
The Investment Team for this project is Eric Crabtree (Primary IO), Stephanie
von Friedeburg (Secondary IO), Kathy McGann (Lawyer), and Jean Orban (Engineer).