Cimko Eurobond

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The proposed IFC investment consists of a subscription of up to US$ 60 million unsecured five-year Eurobond (the Project) into a US$ 400 million issuance of Çimko Çimento ve Beton San. ve Tic. A.S. (Cimko or the Company - https://cimko.com.tr/), a leading Turkish cement producer. Cimko is owned by Sanko Holding A.S. (Sanko or the Sponsor - https://www.sanko.com.tr/en/home.aspx) which is a 120-year old Turkish conglomerate operating mainly in the textile, energy, construction, packaging, cement and real estate sectors.The Eurobond proceeds will be used for (i) refinancing of Cimko’s existing short- to medium-term debt derived mainly from acquisition of Sanko Petrokimya, which owns Sanko Port in Adana (Adana Port) in 2024, (ii) capital expenditures for sustainability-focused green investments over 2025-2027 aimed at reducing its carbon footprint, and (iii) general corporate purposes, including upgrades in management information systems and working capital financing (altogether, the Project). In relation to capital expenditures, IFC will be financing Cimko’s energy efficiency (vertical raw mill and transport system), alternative fuels (feeding system), earthquake reinforcement and fire extinguishing system investments in the Adiyaman cement plant (Cimko Adiyaman).Adana Port (https://sankopetrokimya.com/), a multi-purpose general, container and bulk cargo port, located in Yumurtalik district of Adana/Türkiye, which was constructed by another subsidiary of Sanko Group and commenced operation in 2016 and was acquired by Cimko in 2024. It has a 1.3 km pier length and 250,000 twenty-foot equivalent unit (TEU)/year container handling capacity with ca. nine ha of warehouses and sheltered container freight station operations.Cimko Adiyaman was acquired by Sanko as a result of a tender launched for privatization of the plant in 1995. The plant has a clinker capacity of some 815,100 ton per annum and ca. 769 ha of limestone, calcareous marl and trass quarries operated by Cimko’s contractors.Sanko Group and Cimko are longstanding IFC clients since 2006 (Sanko Cement #24757, https://disclosures.ifc.org/project-detail/ERS/24757/sanko-cement; Cimko Cement II #33753, https://disclosures.ifc.org/project-detail/ESRS/33753/cimko-cement-ii; and Sanko Climate #46580, https://disclosures.ifc.org/project-detail/ESRS/46580/sanko-climate). The environmental and social (E&S) performance of these previous investments have been satisfactory.