Eren Group is a diversified industrial group with operations in the paper, energy, cement, textiles and retail sectors through more than 20 companies. It is ultimately owned by Eren Family. The main vehicle of Eren Family to manage and control its various investments in Eren Group companies is Eren Holding A.S.. Eren Holding’s consolidated revenues in 2011 were at US$1.3 billion on total assets of over US$2.0 billion. This privately owned local holding company controls Modern Karton through its 93% shareholding while remaining minority stake is owned by individual member of Eren Family.

The estimated cost of the Project is US$11 million and IFC is considering to provide up to US$8 million loan to Modern Karton from the cleaner production lending facility as a cleaner production loan.

125.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	125.0
Equity

* These investment figures are indicative

The project site will be adjacent to the Company’s existing premises in Corlu/Tekirdag (Turkey), 100 km west of Istanbul. The site is in an industrial zone and has good access to land transportation by being next to the highway.

- Resource Efficiency: Thanks to the environmental and climate friendly benefits of the Project, at optimum capacity after implementation Modern Karton will be able to consume less fresh water and discharge less waste water per paper produced compared to the current levels.
- Demonstration Effect: The Project is likely to have strong demonstration and replication potential thanks to being a pioneering investment in the sector.

- Long-term Financing: The commercial benefits of the Project will materialize in the medium- to long-run and without IFC Modern Karton has to implement the Project with its own resources due to limited interest of local banks for such small-size cleaner production projects. The proposed cleaner production loan with long-term nature will ensure that the Company''s resources are preserved for larger investments.
- Technical Expertise: IFC''s extensive experience in the paper and pulp business as well as in-house clean production experts are expected to support the client in the Project design and implementation.
- Resource Efficiency: Additionally, IFC will be supporting a company which will utilize sustainable inputs, such as recycled waste paper and recycles water further decreasing Modern Karton''s dependence on fresh water.
- Product Offering: The proposed cleaner production loan will be provided from an already by IFC Board approved cleaner production lending facility. Thus, the investment will be processed as streamlined.

The proposed cleaner production loan will support an existing client to recover water from an existing effluent stream. As such the Project''s impacts will be environmentally positive. As such, it has been classified as a Category C project according to IFC’s Environmental and Social Review Procedure.