Arcelik III

completed

The Project consists of a US$500 million equivalent corporate investment program which supports the continued growth and strategic development of Arcelik, Turkey''s market leader in the home appliance sector. The Project supports key corporate-wide initiatives that allow the Company to maintain its leading position in Turkey and expand its regional presence, including those related to the modernization of existing plants, research and development, information technology, production capacity increases, and acquisitions. In parallel, and through support of a leading corporate model, the Project supports the strengthening and continued development of the SME sector in Turkey. Arcelik reinforces the development of this sector through the implementation of quality management programs, technical training, and plant layout and design support for its regionally-diversified suppliers. By supporting the Company''s acquisition program, the Project also fosters the transfer of first-class production methods and best practices to new production sites, including potentially to countries that have strong historical and economic ties with Turkey. IFC participation in the transaction is expected to extend the availability of term lending in Turkey, by mobilizing funding from a new investor class - institutional investors- and stimulating greater participation of the commercial bank sector. Term lending, as required by Arcelik, is not available locally at reasonable terms.