Arcelik SLL

active

Arçelik A.S. (“Arçelik” or the “Company”) is a leading manufacturer of consumer durables and consumer electronics operating in 58 countries with headquarters located in Istanbul, Türkiye. The Company has 45 manufacturing facilities in 13 countries and has several R&D design centers across the globe. Arçelik is publicly listed and controlled by Koç Holding, the largest Turkish conglomerate. The proposed IFC A loan of up to €100 million (the “IFC Loan”) is IFC’s first sustainability linked loan (SLL) to Arçelik. The IFC Loan will help finance Arçelik’s €200 million growth and development plan (the “Project”) which includes: (a) earthquake preparation efforts in Türkiye, which includes strengthening and fortification of its existing buildings and home appliances manufacturing facilities in Türkiye (approximately €40 m); (b) two solar power plant investments (approximately €27.5 m); and (c) R&D expenditures in Türkiye (approximately €132.5 m). The Kayseri and Aksaray solar power plants (SPP) that will use IFC funding were under construction during IFC’s Project due diligence. The two SPPs have started operating in October and December 2024, respectively. The SPP’s transmission lines (TLs) will not be refinanced using IFC's SLL. The Aksaray's TL is an associated facility since it is dedicated for the Aksaray solar PV and would not be viable without it. ?On the other hand, the Kayseri TL is shared with two other independent solar facilities; hence, it is not considered a project or associated facility. IFC currently has existing investments in Arçelik #45316 (https://disclosures.ifc.org/project-detail/ESRS/45316/Arcelik-ltf).