Istanbul, Turkey February 24, 2004
- The International Finance Corporation (IFC), the private sector financing arm of the World Bank Group is providing a $40 million loan to Borusan Holding A.
ª. This IFC loan to the Holding Company is expected to help Borusan Group improve its financial and operational performance and implement a number of quality control initiatives, and strengthen corporate governance across the Group.
The Holding represents the flagship operating companies in the pipe segment, distribution, high value added steel manufacture, logistics services and technology sectors. In 1994, IFC financed Borusan’s steel pipe operations and provided long-term loans and equity financing for Borçelik Celik Sanayii ve Ticaret A.
ª. a producer of cold-rolled coils.
“Borsuan is a leading corporate with a strong position and IFC’s financing is an important vote of confidence in the dynamic Turkish private sector”, commented Mr. Khosrow Zamani, Director of IFC’s Southern Europe and Central Asia Department. IFC’s loan is structured innovatively to allow the Holding to leverage profitably its key operating subsidiaries. The loan will enable Borusan Holding to restructure its balance sheet and improve its liquidity position. It will also help Borusan Holding to prepare selected Group companies for successful listing on Istanbul Stock Exchange in the near future.
The International Finance Corporation is a member of the World Bank Group. IFC’s mission is to promote sustainable private sector investment in transition economies, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the emerging markets, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. Since its founding in 1956 through FY03, IFC has committed more than $37 billion of its own funds and arranged $22 billion in syndications for 2,990 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY03 was $16.8 billion for its own account and $6.6 billion held for participants in loan syndications.
Turkey joined IFC in 1956 and is one of the top exposures in IFC’s global portfolio of investments. IFC’s continuous activity reflects the improving investment climate in Turkey, greater opportunities in an increasingly broad range of sectors, and recovering private sector demand.