The main development benefits of the proposed investment derive from supporting Sisecam''s US$1.5 billion capital expenditures program in 2013 - 2014. Sisecam is one of the main industrial groups in Turkey and in the region. It has a proven track record as a successful long-term investor, generating employment and fiscal revenues, and transferring industrial know-how to many countries in which it established its presence. This investment program will generate significant development impact for the countries in which Sisecam will invest and is critically important as it comes at a time when FDI in the region has slowed down, many investors remain on the sidelines and there is an increased need to generate stable employment opportunities, particularly in the manufacturing industry.

Sisecam has issued a Eurobond which has been internationally rated (BB+ by S&P and Ba1 by Moody''s, the bond has the same rating as Sisecam Corporate rating). The transaction has a strong demonstration impact for other Turkish companies which are considering accessing the international bond markets, an important step in reducing the country''s dependence on short-term flows and mobilizing the large amounts of long-term capital needed to sustain its development. At the company level, the Eurobond issue will help Sisecam achieve larger economies of scale and broader geographical diversification, enhancing Sisecam''s competitive market position in the global glass industry.

Update related to additional investment under the COVID-19 response facility:   

The Project will (i) contribute to the post-COVID-19 recovery especially through increased economic activity, and also (ii) promote resilience by contributing to supply chain continuity  across various key industries (e.g., automotive, construction, food & beverages) in which Sisecam Group’s products are utilized.

IFC, as a partner of more than 40 years, has financed Sisecam in Turkey and other countries during its international expansion. IFC's participation in Sisecam's debut Eurobond bond issuance as an anchor investor will be important as this Eurobond is expected to help (i) pave the way for future bond issues; (ii) raise long-term unsecured 7-year debt with a non-amortizing bullet structure that will lengthen the average maturity of the Company's debt stock; (iii) support the Group's South-South expansion program in the wake of the global financial crisis and while investment flows in the ECA region remain subdued; and (iv) develop a corporate environmental, health, and safety system (EHSS).

Update related to additional investment under the COVID-19 response facility:  

IFC's expected additionality includes its counter-cyclical role through provision of long-term financing and diversification of Sisecam's funding base.

This proposed direct investment is classified as a Category B project according to IFC’s Policy on Environmental and Social Sustainability as the potential E&S risks associated with the proposed investment program are site-specific, reversible and may readily be mitigated. All of IFC’s existing and planned investments with ?i?ecam to date have been categorized B.

The most significant E&S issues in ?i?ecam''s glass making and chemicals portfolio relate to control of emissions to air and water, and labor and working conditions including occupational health and safety. The company will implement a corporate level environmental, social and occupational health and safety (ESOHS) system to ensure environmental and social (E&S) risks and impacts are effectively mitigated.

Update related to additional investment under the COVID-19 response facility:   

This follow-on investment is classified as a Category B according to IFC’s Policy on Environmental and Social Sustainability as the potential environmental and social (E&S) risks associated with the proposed investment are site-specific, reversible and may readily be mitigated.

The most significant E&S issues relate to control of emissions to air and water, resource efficiency and labor and working conditions including occupational health and safety. Sisecam Group has a corporate level E&S management system to ensure E&S risks and impacts are effectively mitigated.

Please refer to the Environmental and Social Review Summary (ESRS) linked to this project SII in the IFC's project disclosure website.

Update related to additional investment under the COVID-19 response facility:    

E&S Performance and COVID-19 related Impacts: This is a follow-on investment, at Sisecam level, under the IFC’s COVID-19 response facility. Ongoing supervision of the existing investment indicates Sisecam’s E&S performance is generally satisfactory and is materially compliant with applicable at-approval requirements of the IFC’s active investments. This follow-on investment does not result in any new material E&S risks and impacts. Sisecam’s corporate level management of the E&S risks and impacts continues as described in the Environmental and Social Review Summary (ESRS) for previous investment, Sisecam Bond (project #33711) (please refer to link: https://disclosures.ifc.org/#/projectDetail/ESRS/33711). No specific ESAP was developed for the previous Sisecam level project and other  IFC’s active investment’s ESAPs are either all completed and/or ongoing as planned.

Scope of IFC’s Appraisal: IFC’s virtual E&S due diligence for this follow-on investment, included conference calls, email exchanges with Sisecam representatives to understand the potential impact of COVID-19 pandemic on its operations and workforce. IFC also reviewed information and documents shared by Sisecam under IFC’s existing investment. After COVID-19 related travel restrictions are removed, IFC will visit Sisecam, as part of its regular portfolio monitoring activities.

Response to COVID-19 pandemic: Sisecam’s facilities have been mostly in operation throughout the COVID-19 pandemic and Sisecam does not anticipate any retrench or salary reductions due to the COVID-19 crisis. Sisecam implemented various measures, including temperature checks upon entrance, social distancing, enhanced disinfection practices, encourage remote working whenever practical, especially for the administration and office staff, review cafeteria and transportation services and divide the services into smaller groups. Based on the information provided, there is no significant health impact due to COVID-19 on  Sisecam’s workforce and Sisecam prepared a detailed COVID-19 response plan to ensure employee health and safety in line with local authorities and good practices provided by WHO and other international institutes. Sisecam will continue to ensure ongoing compliance with IFC Performance Standards – especially provisions under PS2: Labor and Working Conditions and PS4: Community Health Safety and Security.

Refer to the E &S Action Plan tab in the ESRS on the SPI (publishing) site.

Update related to additional investment under the COVID-19 response facility:              

No specific E&S action plan was developed for this follow-on investment.