TURKEY: IFC is providing a debt facility to Turkey’s major cement firms

IFC, a member of the World Bank Group, is providing a long-term financing package to Cimko, one of Turkey’s major cement firms and a joint venture between Sanko Group in Turkey and Italy’s Cementerie Aldo Barbetti SPA, to invest in the ready mix concrete (RMC) segment and in energy efficiency.´

 

The debt facility includes a $40 million loan for IFC’s own account and a syndicated loan of €18 million from BNP Paribas Fortis SA/NV mobilized by IFC. 

The project is expected to strengthen Cimko’s competitiveness and increase employment in the Southeast Anatolia region of Turkey, where Cimko is based. The deal will give the company sizeable energy savings and reduce its greenhouse gas emissions. 

Cimko will be able to supply more top-quality cement to the domestic market and export more to the MENA region, where cement demands are growing due to major infrastructure and housing investments. 

“Sanko Holding’s partnership with IFC goes back to 1989,” said Sanko Holding Chairman Abdulkadir Konukoglu. “We value our relationship with IFC and see IFC as a long term partner. In addition to financial support, IFC’s deep industry expertise contributed a lot to Cimko’s success.” 

IFC’s guidance on installation of energy-efficient, environmentally and socially friendly processes will also contribute to the company’s sustainable development programs. 

“Cement is critical for the construction sector, the world’s largest industry, and a shortage of supply could hinder the industry’s growth. This project will help Cimko increase its productivity efficiently,” said Guy Ellena, IFC Director for Manufacturing, Agribusiness, and Services in Europe, the Middle East, and North Africa. “We are looking forward to cooperate further with our long-term client Sanko.” IFC has been investing in Turkey’s private sector for nearly 50 years. In the 2013 fiscal year, IFC delivered a record $985 million in 20 projects supporting exports, smaller businesses, renewable energy, and the healthcare, education, and infrastructure sectors.