Stomana is owned 100% by Sidenor Steel Products Manufacturing S.A. (“Sidenor”, or the “Sponsor”). Established in 1962 in Thessaloniki, Greece, Sidenor is part of the Viohalco Group of Greece. Sidenor has been publicly traded on the Athens Stock Exchange since 1997, and is engaged in the production, manufacturing and sales of steel products through its subsidiaries. Sidenor, together with its subsidiaries, employs a total of circa 3,000 people, and is the largest Greek steel producer with a leading position in Greece and the Balkans. The main areas of activity of Sidenor include steel mini-mill operations (in Greece, Bulgaria and FYR Macedonia), pipe manufacturing, downstream operations, and sales & distribution of reinforcing bars, merchant bars, wire mesh, steel plates and steel pipes.

The overall project cost is expected to be approximately €70 million. The proposed IFC involvement in the project entails an investment of up to €25 million into Stomana comprising a C-Loan of up to €18.75 million and up to €6.25 million of A Loan, both facilities being on IFC’s own account.

33.46 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	33.46
Equity

* These investment figures are indicative

Stomana’s steel mini-mill is located in Pernik, Bulgaria, approximately 20 kilometers to the south-west of Sofia. The total surface of the land owned by Stomana is approximately 300 hectares including a total covered and used surface of 28.5 hectares including: a scrap-yard, a steelmaking facility, two long products rolling mills, a flat products mill, a grinding balls plant, a cold finishing plant, and a concrete reinforcing mesh and steel cages plant. All of the above mentioned facilities are actively operating.

- Countercyclical Support: The proposed transaction would provide durable financial support to a significant employer, exporter and tax payer in Bulgaria by supporting Stomana's efforts in the aftermath of the worst financial year in recent history for most steel-makers. - Environmental and Financial Benefits: Part of the proposed IFC financing is aimed for the capital investments of Stomana. The investment into the new Electric Arc Furnace (EAF) would bring forth better utilization of electric and natural gas consumption of Stomana. This would create both environmental and financial benefits as soon as the new technology is installed and implemented.

- The long-term nature of the proposed IFC investment provides the Company with the required liquidity during the turnaround phase of the Bulgarian steel operation in the aftermath of the financial crisis. - The C Loan product addresses the cyclicality of the Company's underlying business over the long-term.

This is a category B project according to IFC''s environmental and social review procedure. Implementation of the project will promote production and environmental upgrades at existing facilities, including enhancement of pollution abatement and control systems installed at the plant. The project includes extensive revamping of production equipment and installation of new off-gas treatment systems. As a result of these changes air emission reductions and improved energy efficiency will be achieved at the facilities. A limited number of site-specific environmental, health and safety (EHS) and social/community adverse impacts may result during construction and operations, which can be avoided or mitigated by adhering to generally recognized standards, guidelines or design criteria. The following key issues have been identified during appraisal of the project, and they are described in detail in the Environmental and Social Review Summary: implementation of Stomana’s integrated EHS management system and relevant certification; energy consumption and efficiency of the plant facilities, especially EAF performance, and greenhouse gas emissions; off-gas treatment plant performance and air emission control; management of solid waste, especially sludge management and hazardous wastes management; management of scrap metals, including radioactivity detection; process water and wastewater treatment efficiency; noise control and mitigation (both workplace and ambient noise); and human resource management, including management of workforce reduction in 2008 and 2009.