The project sponsor is Sise ve Cam Fabrikalari A.S. (“Sisecam”) and Soda Sanayii A.S. (“Soda Sanayii”), both listed on Istanbul Stock Exchange (“ISE”). SSL is 86% owned by the Soda Sanayii, with the remainder of the Company being state owned. Sisecam is a leading Turkish producer of flat glass, tableware, glass containers, glass fibers and associated products worldwide. Sisecam owns 71% of the Soda Sanayii’s shares directly and 14% through Anadolu Cam Sanayii A.S., its glass packing arm.

The proposed IFC investment is estimated at €15 million comprising (i) the replacement of short-term debt and (ii) financing of ongoing investments. These investments comprise new equipment that will result in a capacity increase and allow SSL to benefit from economies of scale, reduce costs and emphasize product quality and high margin products.

19.51 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	19.51
Equity

* These investment figures are indicative

The project is located in the Tuzla Canton of the Federation Bosnia Herzegovina on the outskirt of the city of Lukavac (140 km north of the capital Sarajevo and 14 km west of Tuzla).

The investment will help enhance SSL's turnaround and increase its competitiveness through economies of scale. Once SSL returns to profitability, this will enhance tax and export revenues for the country. SSL is still one of the largest employers in the area and also generates significant employment at the local brinestone and lime mines.

Through this investment IFC will provide long-term financing to SSL to help alleviate the adverse effects of the global financial crisis and also enable the company to undertake necessary renovation investments. The turnaround of SSL will have a demonstration effect, making it an example of a successful privatization and FDI in BiH, an IDA country. IFC will also continue to work with SSL to improve its environmental management systems.

IFC’s E&S due diligence has determined that the project has limited site-specific potential adverse environmental and social impacts that are few in number, largely reversible and that can be readily addressed through mitigation measures. This is therefore a Category B project according to IFC’s Policy on Social and Environmental Sustainability.
Issues of potential concern include management of routine EHS issues i.e., solid waste and hazardous material management, effluents including the two mud storage tailing ponds (referred to as the White Sea and Black Sea), air emissions control, and effluent and waste management including monitoring, working conditions and compliance with national labor laws and employees’ occupational health and safety, fire safety and the Company’s approach to community engagement and disclosure of information. Although the management has no plans for further retrenchment this issue remains a potential concern that SSL management will manage according to Bosnian Labor law and IFC PS2.