Borcelik Fin.

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Borçelik Çelik Sanayii Ticaret A.S. (“Borcelik”, the “Company”) is a JV between Borusan Holding A.S. (“BH” or “Group”) and ArcelorMittal, one of the largest global steelmakers (https://www.borusan.com/en/home). Founded in 1990, Borcelik is the second largest private sector flat steel manufacturer and galvanized steel producer in Turkiye (https://www.borcelik.com/en). The Company has a production capacity of 1.5 million (m) tons of hot dip galvanized steel, cold-rolled steel, and hot-rolled steel, all of which are industrial raw materials that serve  the automotive, white goods, and construction sectors, among others. The parent, BH, is a diversified Turkish conglomerate with primary operations in steel manufacturing and the distribution of cars and industrial machinery. Borcelik’s main plant is located at Gemlik (near Istanbul in Turkey) in a 240,000 square meter (sqm) area. Two smaller steel service centers are are located in Bursa (20k sqm) and Manisa (10k sqm).IFC is considering a financing package of up to US$210M to Borcelik to finance the modernization and expansion program as well as working capital requirements, which will include the installation of a 1.6 mt Pickling Line and Tandem Cold Mill (PLTCM) upstream line combined with a 0.5 mt Continuous Galvanizing and Annealing Line (CGAL) downstream line on the industrial premises/land adjacent to the Gemlik Plant (“Project”). The IFC loan will be committed in two phases over a period of 3 years, with the first phase consisting of a senior, corporate A loan of up to US$80M, a MCPP Trust Loan of up to US$50M, and a B1/Parallel loan of up to US$30M, and the second phase consisting of an A Loan and B1/Parallel loan of up to US$50M. Borcelik has acquired ownership of the adjacent closed-out Borusan Pipe factory land, a subsidiary of Borusan Group, which has an overall area of about 125,000 square meters and is bordered with other industries. Borcelik plans to demolish a few small steel structures on about 7800 m2 while retaining the majority of the existing structures and constructing about 9300 m2 of new areas during the execution of the expansion work.Borcelik The Group was a former IFC client until 2014 (# 20476), and its environmental and social (E&S) performance was satisfactory based on IFC supervision during the project's lifetime.