Sarajevo, Bosnia and Herzegovina, July 18, 2013
—IFC, a member of the World Bank Group, with the support of the Government of Canada, is helping Turkey’s Sisecam Group enhance competitiveness and cleaner production in its Bosnia and Herzegovina subsidiary, Sisecam Soda Lukavac, a soda ash producer.
IFC will provide €24 million in financing to Sisecam Soda Lukavac, including €7.5 million from the IFC-Canada Climate Change Program. The loan will help the company improve resource and energy efficiency.
“IFC, an important financial partner of Sisecam, has once again demonstrated its support and commitment to our group,” said Prof. Dr. Ahmet Kirman, Vice Chairman and CEO of the Sisecam “The confidence IFC has in us is expressed through its cooperation with us on expansion projects in the region, an integral part of the group’s growth strategy.”
In 2007, IFC provided a €24 million loan to Sisecam to help finance the acquisition of Soda Lukavac, then a loss-making state-owned enterprise. In 2010, IFC provided another €15 million loan to Sisecam’s subsidiary in Bosnia and Herzegovina. Sisecam has been an IFC client for over 35 years with multiple investments, first in Turkey, and then abroad as IFC helped finance the group’s expansion in Bulgaria, Russia, the Balkans, and other countries in Europe and Central Asia.
Canada’s contribution was instrumental, helping to make the financing package viable. “The global challenge of climate change requires a global solution, and the Government of Canada is proud to support environmental efforts such as these,” said Canada’s Environmental Minister, the Hon. Peter Kent.
“Increasing energy efficiency and resource utilization will provide Bosnia and Herzegovina with environmental and economic benefits,” said Guy Ellena, IFC Director for Manufacturing, Agribusiness, and Services for Europe, the Middle East and North Africa. “Our financing is expected to help Sicecam Soda Lukavac become more resource efficient, profitable, and competitive, while improving the quality of life for local residents through reduced pollution.”
Bosnia and Herzegovina became a shareholder and member of IFC in 1996. Since then IFC has invested $343 million in the local economy, with particular focus on manufacturing and financial markets. IFC has also invested in the country’s health sector, municipal infrastructure, agribusiness, and construction. IFC offers advisory services that aim to improve the investment climate in Bosnia and Herzegovina, encourage the use of renewable energy, expand access to finance, and attract private sector participation in the development of infrastructure projects.
About the IFC-Canada Climate Change Program
The IFC-Canada Climate Change Program promotes private sector financing for clean energy projects. Canada’s financing to IFC for this program is part of its overall fast-start financing contribution for 2010–2011. Under the Copenhagen Accord, developed countries committed to provide fast-start financing of almost $30 billion for 2010–2012 to support climate change mitigation and adaptation in developing countries. As part of Canada’s commitment to support climate change action in developing countries, Canada is contributing 1.2 billion Canadian dollars in new and additional climate change financing over three years (fiscals 2010-2013).
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
.
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