Kordsa Argentina

completed

Kordsa Global Endustriyel Iplik ve Kord Bezi Sanayi ve Ticaret A.S. (“Kordsa” or the “Sponsor”), a existing IFC client, is the world’s leading producer of nylon and polyester yarns, cord and industrial fabric mainly used in automotive tires, rubber parts, and transmission and conveyor belts. Kordsa has 11 manufacturing plants located in 9 countries. The proposed investment in the South American subsidiaries of Kordsa entails providing two separate corporate loans to Kordsa Brasil S.A. and Kordsa Argentina S.A. (“Kordsa Argentina”), to be utilized for refinancing part of their existing debt, working capital requirements and maintenance capital expenditures. This summary refers exclusively to Kordsa Argentina (“the Company”). Kordsa Argentina is located in Berazategui, about 20 Km south of Buenos Aires, and currently has three operational sections: spinning, utilities, and the tire cord fabric (“TCF) section, which includes twisting, weaving and dipping. The Company is currently restructuring its production to focus on yarn manufacturing only and the TCF section should close by the end of February 2011.