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The International Finance Corporation (IFC) has approved investments totalling US$25.6 million equivalent for three projects in Turkey. IFC, a member of the World Bank Group, is the largest multilateral source of financing for private sector projects in developing countries.
IFC To Invest In Turkey's Life Insurance Sector
IFC will make an equity investment of up to US$600,000 to acquire up to 15% of the common stock of Turkey Life Insurance Company, a new venture that will offer life insurance in Turkey. The other shareholders in the venture will be the Turkish affiliate of Swiss Reinsurance and Ekspres Bank, a local financial institution. The new company, which will be capitalized at about US$4 million, will also offer health policies and pension schemes. It is expected to contribute to the development of the insurance industry by structuring products to cope with inflation, offering high service standards, and increasing the popularity of life insurance in Turkey, where relatively few people have such insurance at present. In addition, by mobilizing long-term contractual savings and acting as an institutional investor, the company will address one of the main weaknesses in the Turkish securities market.
IFC To Finance CBS Group In Turkey
IFC will provide a loan of US$15 million to CBS Group, Turkey's largest paint and ink manufacturer, which plans to modernize and expand its production facilities, restructure its working capital, and repay a significant portion of its short-term debt. The company's investment program, with an estimated total cost of US$34.2 million, is intended to increase production capacity by 40% over the next five to seven years.
IFC To Finance Turkish Agribusiness Company
IFC will provide financing of US$10 million to AytaÁ Dis Ticaret Yatirim Sanayi A.S. (AytaÁ), a Turkish food company. The financing consists of a loan of US$8 million and an equity investment of US$2 million. AytaÁ is building an integrated meat and dairy processing facility consisting of an abattoir and meat processing plant, a dairy plant, a fattening farm, a cow and sheep dairy farm, and a feed mill on 56 hectares of land at Cerkes, north of Ankara. The total cost of the project is US$75.5 million. The facility is being built by German and Danish contractors to European Union specifications. At full capacity, it will produce each day 140 metric tons of carcasses and processed meat products, and process 90 metric tons of raw milk into pasteurized milk, yoghurt, and cheese.
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