BMW South Africa

completed

Bayerische Motoren Werke Aktiengesellschaft (“BMW AG” or together with its subsidiaries, the “BMW”) has invited IFC to provide up to US$150 million financing equivalent in South African Rand (ZAR) for the upgrade of its existing automotive assembly plant to produce the new BMW X3 model in South Africa (the “Project”), for global markets including Europe, Africa and Asia. The IFC financing would be a long-term loan in local currency and would be extended to BMW (South Africa) (Pty) Ltd, Pretoria (“BMW SA”). BMW SA is incorporated in South Africa (“SA”) and engages in the manufacturing, importing, exporting and distribution of motor vehicles, parts and accessories. The Project will be undertaken at BMW SA's existing assembly plant in Rosslyn (the “Rosslyn Plant”), which was taken over by BMW in 1973 as BMW's first overseas plant out of Germany. Currently the plant produces the BMW 3 Series with about 2,800 direct employees and about 12,000 indirect employees engaged by suppliers. The IFC investment will be used to support the establishment of a new BMW X3 production facility, increase the plant efficiency and upskill employees. The investment will support technological transition of the plant from producing steel body vehicles to vehicle bodies built partially from aluminum with significant impacts to the supply chain.