Established in 1973 and headquartered in Istanbul, Kordsa is a world leading producer of nylon and polyester yarns, cord and industrial fabric mainly used in automotive tires, rubber parts, and transmission and conveyor belts. Kordsa has 11 manufacturing plants located in 9 countries and is an existing IFC client. The Group is majority-owned (91.1%) by the one of the largest conglomerates in Turkey, Haci Omer Sabanci Holding A.S (“Sabanci Holding”), and 8.9% of its shares are listed on the Istanbul Stock Exchange. Meanwhile, the Company is a 51/49 joint venture between the Group and the Egyptian Partners. Mr. Hossam Mohammed Lasheen is the Chairman of the Company and the largest single shareholder in the Egyptian Partners.

The total Project cost is estimated at US$11 million. The proposed IFC investment entails an A-Loan for IFC’s own account of US$11 million.

11.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	11.0
Equity

* These investment figures are indicative

The Company’s operations are located in the Tenth of Ramadan City, Area No. 7, Industrial Zone B1 Egypt, about 60 km north of Cairo.

-Employment preservation: through capacity increase and efficiency gains, the Project helps to maintain and further create employment at the Company
-Continued know-how and technology transfers: given the Group''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 through the expansion of the Company''s operations into PET.

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:
-Crisis response: through the proposed Project, IFC would provide countercyclical support to a trusted client in a crisis-affected country.
-Long-term partnership: Kordsa 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 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. A limited number of specific environmental and social impacts may result from the Project and 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 Tenth of Ramadan City, Egypt; labor issues in the Company’s operations; management of emissions to air and water arising from the operation of its facilities; hazardous materials and waste management, use of energy, water and resources; relations with the nearby communities. The Company 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 host country laws and regulations and IFC''s Performance Standards (PS).

IFC’s review of this investment included a visit to the plant in Egypt 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.