The Sponsor is established in 1973 and headquartered in Istanbul. Kordsa is majority owned (91.1%) by the one of the largest conglomerates in Turkey, Sabanci Holding, and 8.9% of its shares are listed on Istanbul Stock Exchange. Kordsa Argentina is a wholly owned subsidiary of Kordsa. Kordsa Brasil is indirectly (through wholly owned Sabanci BV, Acordis Int. BV and Dusa Spain) 94% owned by Kordsa while the remaining 6% is held mainly by two local nationals.

The proposed IFC investment includes two separate loans; an A Loan of up to US$25 million to Kordsa Brasil, and an A Loan of up to US$15 million to Kordsa Argentina. There will be two loan agreements for each loan. This disclosure covers the IFC A loan to Kordsa Brasil. Prior to signing the legal documents with Kordsa Argentina, appropriate, separate, property specific public disclosures will be made for Kordsa Argentina investment.

40.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	40.0
Equity

* These investment figures are indicative

Kordsa Brasil’s operations are located within the Camaçari industrial complex (Polo Industrial Camaçari) near the city of Salvador in the state of Bahia. Kordsa Argentina’s plant, located in Berazetegui, Argentina.

The Project will have significant development impacts: IFC's investments in Kordsa Brasil and Kordsa Argentina will benefit the manufacturing cluster in both countries, and particularly in the case of Brazil, in a frontier region of the country, where employment opportunities are limited. Employment preservation: By strengthening the capital structure of the companies, IFC's investment will help retain jobs and assist the companies emerge from the crisis as more viable entities. Continued know-how and technology transfer: Given the Sponsor's focus on product innovation and its ability to meet stringent quality standards, the Project is expected to result in continued technology and know-how transfer to the subsidiaries in terms of manufacturing and quality processes.

The proposed investment is in line with IFC’s strategy of building and maintaining long-term relationships with emerging players from developing countries. IFC’s additionality in the Project will be as follows: Long-tenor of debt financing: IFC's investment will improve the companies' capital structure by refinancing their short-term debt in the context of scarcity of long-term debt. Long-term partnership: Kordsa Global values IFC's role as a long-term partner, as its relationship with IFC evolves through changing market environments and its own evolving needs. Support to Kordsa Global in its South-South investments is expected to help maintain a long-term relationship with a company that is a leader in its sector and expanding its operations in emerging markets.

This is a category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Key environmental and social issues reviewed during the appraisal include the following: management of its environmental, health and safety performance in the operation of all facilities; safe and healthy working conditions at the Company’s plant in the state of Bahia, Brazil; labor issues in the Company’s operations; management of emissions to air and water arising from the operation of its facilities; use of energy, water and resources; relations with the nearby communities. Kordsa Brasil has provided information on its current practices and policies that seek to address environmental and social risks and impacts to ensure that the proposed project complies with or, will upon implementation of measures agreed upon as part of IFC’s Investment documents, comply with host country laws and regulations and IFC''s Performance Standards (PS).

IFC’s review of this investment included a visit to the plant in Brazil and meetings with key management personnel, including human resources, operational managers and support staff. A detailed description of IFC’s environmental and social due diligence of this investment can be found in the Environmental and Social Review Summary (ESRS), which is also available on IFC’s website at http://www.ifc.org/projects.