Summary of Proposed Investment
Project Number
11270
Company Name
ECZACIBASI HOLDING A.S.
Date SPI Disclosed
Jan 4, 2002
Country
Turkiye
Industry
Manufacturing
Projected Board Date
Feb 10, 2002
Status
Completed
Sector
Glazed Ceramic Tiles
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
B - Limited
Previous Events
Approved : May 31, 2002
Signed : Jun 14, 2002
Invested : Aug 5, 2002
Project Description
EKS is one of Turkey’s leading tile manufacturers and exporters with revenues of about US$70 million in 2001. The proposed project includes financial restructuring by providing long-term working capital financing, and investments in capacity and efficiency which will enable EKS to further enhance its overall export competitiveness by increasing high value-added production and reducing costs.
IFC Role and Developmental Impact: IFC’s role as a provider of finance for the Turkish corporate sector has increased significantly after the recent economic crisis and financial turmoil. IFC will be providing the necessary long-term finance to enable strong exporters such as EKS to continue to maintain their position in the global market. With IFC’s assistance, EKS will be able to: (i) improve its balance sheet by replacing expensive and uncertain short-term debt with long-term financing; (ii) undertake export-oriented investments in specialty tiles; and (iii) enhance the overall efficiency of its operations by removing bottlenecks in production. IFC''s investment will thus restore the company’s liquidity and enable it to increase exports in direct support of the Turkish economy. Moreover, the project gives IFC an opportunity to support a company belonging to an existing client (Eczacibasi Group) in one of its major business segments at a critical time for the Turkish economy.
World Bank Group Strategy: The World Bank Group and IMF have focused recent efforts on helping Turkey cope with its financial crisis through continuing adjustment lending, support of structural reforms and fiscal stabilization. This project is consistent with both World Bank strategy and with IFC''s country strategy for Turkey, which seeks to: restore stable growth, improve living standards, reduce economic vulnerability and poverty, and aid the private sector to take advantage of the opportunities offered by the reform. By reinforcing the financial structure of an export-oriented company, IFC supports an inflow of foreign currency earnings for Turkey while providing a positive image for quality-based Turkish exports. Such a role figures prominently during recessionary periods such as 1999, when the overall value of Turkish exports declined. In addition, by supporting a leading outward looking, regionally-oriented company, IFC fosters the transfer of first-class production methods, strong environmental, health and management systems.
IFC Role and Developmental Impact: IFC’s role as a provider of finance for the Turkish corporate sector has increased significantly after the recent economic crisis and financial turmoil. IFC will be providing the necessary long-term finance to enable strong exporters such as EKS to continue to maintain their position in the global market. With IFC’s assistance, EKS will be able to: (i) improve its balance sheet by replacing expensive and uncertain short-term debt with long-term financing; (ii) undertake export-oriented investments in specialty tiles; and (iii) enhance the overall efficiency of its operations by removing bottlenecks in production. IFC''s investment will thus restore the company’s liquidity and enable it to increase exports in direct support of the Turkish economy. Moreover, the project gives IFC an opportunity to support a company belonging to an existing client (Eczacibasi Group) in one of its major business segments at a critical time for the Turkish economy.
World Bank Group Strategy: The World Bank Group and IMF have focused recent efforts on helping Turkey cope with its financial crisis through continuing adjustment lending, support of structural reforms and fiscal stabilization. This project is consistent with both World Bank strategy and with IFC''s country strategy for Turkey, which seeks to: restore stable growth, improve living standards, reduce economic vulnerability and poverty, and aid the private sector to take advantage of the opportunities offered by the reform. By reinforcing the financial structure of an export-oriented company, IFC supports an inflow of foreign currency earnings for Turkey while providing a positive image for quality-based Turkish exports. Such a role figures prominently during recessionary periods such as 1999, when the overall value of Turkish exports declined. In addition, by supporting a leading outward looking, regionally-oriented company, IFC fosters the transfer of first-class production methods, strong environmental, health and management systems.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr.Ceyhan Inaltong
Finance Manager
Eczacibasi Karo Seramik A.S.
E/5 Karayolu Sifa Mah.
Ataturk Cd.
Tuzla, Istanbul, Turkey
Finance Manager
Eczacibasi Karo Seramik A.S.
E/5 Karayolu Sifa Mah.
Ataturk Cd.
Tuzla, Istanbul, Turkey