Istanbul, Türkiye, November 9, 2022—IFC is providing financing to Arçelik- a leading global home appliances manufacturer and one of Türkiye's leading exporters and manufacturers- amid a challenging macroeconomic environment.
To date IFC has provided Arçelik with a €120 million loan which is part of a €150 million IFC loan package to help fund Arçelik's working capital requirements in Türkiye and investments in Arçelik's subsidiary in Bangladesh, Singer Bangladesh Limited, where it plans to increase production, introduce innovative technologies, and create additional jobs.
"Arçelik's global growth strategy is deeply connected with our sustainability vision, and our ambitious targets require full commitment, a key component of which is funding. We are excited and proud to enter into an agreement with IFC; it is a valuable opportunity to help us scale our impact, and one that will significantly reinforce our sustainable growth journey and competitive edge," said Hakan Bulgurlu, CEO of Arçelik.
Arçelik is a subsidiary of Koç Holding, both long-standing IFC partners. In 2019, IFC provided advisory support to Arçelik to help the company improve its water efficiency, and this new investment is expected to improve the water efficiency of Arçelik's operations in Bangladesh. Both Türkiye and Bangladesh suffer from declining or overstretched water supplies.
"Supporting the development of our clients also internationally is a key element of our strategy to create jobs and drive sustainable economic growth," said Arnaud Dupoizat, IFC Country Manager for Türkiye. "We aim to support our long-term partner's operations and boost its competitiveness, both in Türkiye and overseas."
IFC has supported private sector development in Türkiye for more than 50 years, with investments of nearly $10 billion in the last decade alone. Türkiye represents IFC's third-largest country exposure globally, with a committed portfolio of close to $4 billion as of June 2022.
About Arçelik
With 45,000 employees worldwide, Arçelik's global operations include subsidiaries in 53 countries, and 30 production facilities in 9 countries, and 12 brands (Arçelik, Beko, Grundig, Blomberg, ElektraBregenz, Arctic, Leisure, Flavel, Defy, Altus, Dawlance, Voltas Beko). Arçelik, which is among the three largest white goods companies in Europe with its market share (based on volumes), reached a consolidated turnover of €6.5 billion in 2021. Arçelik's 29 R&D and design centers & offices across the globe are home to over 2,300 researchers and hold up to 3,000 international registered patent applications to date. In 2021, Arçelik achieved the highest score in the DHP Household Durables category for the 3rd year in a row (based on the results dated November 2021) in the Dow Jones Sustainability Index of the S&P Global Corporate Sustainability Assessment. Through its leadership position in sustainability and credible decarbonization roadmap for achieving net zero, Arçelik became the first and only company from its industry to receive the Terra Carta Seal by His Majesty King Charles III. Arçelik's vision is 'Respecting the World, Respected Worldwide.' www.arcelikglobal.com/en
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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