Istanbul, Turkey, January 28, 2014-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.
About IFC
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 visit www.ifc.org.
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About Cimko Cement and Concrete
First entered into cement business through privatization of Adiyaman plant from the government in 1995, Cimko continued its growth by acquiring another plant through privatization, the Bartin Plant (which was transferred to another Sanko Group company in 2007) and constructing its first cement plant in Kahramanmaras in 2006. Cimko currently operates Adiyaman and Kahramanmaras cement plants, a packaging plant in Gaziantep and 11 ready mix concrete plants in different locations. Cimko is 70 percent owned by the Sanko Group and 30 percent owned by Barbetti, an Italian cement producer.
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