The IFC is to provide a long-term financing package to Turkish cement producer Cimko to back investments in the ready-mix concrete segment and energy efficiency, the international lender has said.
The debt facility includes a US$40m loan for IFC's own account and a syndicated loan of EUR18m from BNP Paribas Fortis SA/NV mobilised by IFC.
The IFC said 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," it said in a statement.
Cimko, which is a joint venture between the Sanko Group of Turkey and Italy's Cementerie Aldo Barbetti, will be able to continue supplying high-quality cement to the domestic market and export more to the MENA region.
"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 programmes.
"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."