Cimos is controlled by management and Slovenian financial institutions and corporations. The six main shareholders, owning 76.83% of the Company are Kapitalska d.d-PPS (21.39%), Kovinoplastika Loz d.d (14.21%); Banka Koper d.d (13.55%); Cimos d.d. (13.34%); Alpos d.d. (7.44%); D.S.U. d.o.o. (6.9%).

The project is estimated to cost $117 million equivalent and IFC has been requested to provide $35 million equivalent financing in the form of an A loan and mezzanine loan to help finance the project.

34.46 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	34.46
Equity	0.0

* These investment figures are indicative

The project is located at Cimos’existing production facilities in Bosnia (Novi Travnik, Zenica, Gradacac). The investment will be in the Group existing facilities.

Revival of the Automotive Industry: The project will help revive the automotive industry in Bosnia & Herzegovina, which has historically been a key component of the country’s economy but was severely affected by the recent conflict.

Strengthening Economic Linkages:

The project will benefit employees through increase in job security, and government through higher taxes, and help strengthen upstream and downstream supply chains in materials supply, transportation, distribution, services and finance.

Access to Knowledge and Markets:

Cimos will help develop management and technical skills, transfer knowledge, improve productivity, and promote efficient use of raw materials and labor, which will help to strengthen the competitiveness of the domestic automotive industry in Bosnia & Herzegovina.

Improved Environmental Performance:

Cimos will implement international environmental standards in its subsidiaries in Bosnia & Herzegovina, which is expected to translate to improved financial performance and benefit the country.

Demonstration Effect:

The program is expected to have a strong demonstration effect by encouraging other foreign investments in the country as the perceived risk continues to diminish. Increased economic ties between the countries of former Yugoslavia will help re-cement relationships.

Political Comfort: IFC‘s strong and long presence in the country would provide the necessary comfort for Cimos’ investment in Bosnia & Herzegovina, in a region with a turbulent history and elevated risk.

Financial Support: IFC will provide appropriate long-term financing to support the project.

Environmental: IFC will support Cimos in implementing environmental improvements in its subsidiaries in Bosnia & Herzegovina.

Cimos is a Category B project, according to IFC’s Procedure for environmental and Social Review procedure. A summary of IFC’s environmental and social review findings for the project including the rationale for the B categorization is made available through the Environmental and Social Review Summary (ESRS) disclosed through the IFC''s website. The Environmental and Social Action Plan (ESAP), which is attached to the ESRS, contains specific tasks that the client will undertake to mitigate perceived risks and impacts from the project, and to ensure compliance with IFC’s Performance Standards.

Key environmental and social issues of this project are associated with the process of construction of production facilities and refurbishing of the existing plants, including social and environmental assessment and putting in place appropriate permissions. During the operations phases the key issues include air emissions, waste water discharges / management; solid hazardous waste management. Designs must incorporate life and fire safety measures appropriate to facility size, location and expected end use. Management of occupational health and safety during construction and operations is crucial. In addition, the energy efficiency of the processes needs to be carefully assessed and if necessary improved.