Borcelik Fin.

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Borçelik Çelik Sanayii Ticaret A.S. (“Borcelik”, the “Company”), founded in 1990, 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. Borcelik’s main plant is located in Gemlik (near Istanbul in Turkey) on a 240,000 square meter (sqm) area. Two smaller steel service centers 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 (“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.