Kordsa Global-multi country

completed

Kordsa Global Endustriyel Iplik ve Kord Bezi Sanayi ve Ticaret A.S. (“Kordsa” or the “Sponsor”), a former 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. (“Kordsa Brasil”) and Kordsa Argentina S.A. (“Kordsa Argentina”), to be utilized for refinancing part of their existing debt, working capital requirements and maintenance capital expenditures. There will be two loan agreements for each loan. This disclosure covers the IFC A loan to Kordsa Brasil. Prior to signing the legal documents with Kordsa Argentina, appropriate, separate, property specific public disclosures will be made for Kordsa Argentina investment. This summary refers exclusively to Kordsa Brasil (“the Company”). Kordsa Brasil, produces cord fabric, industrial fabric, single-end cord and rope cording, among other products. The manufacturing process consist of the following operations: drying of polyester chips using steel vats surrounded by thermal fluid heated by electricity; spinning and drawing, where steam is used to aid the fiber extrusion; twisting and weaving to produce fabric; dipping of fabric/yarn in a latex solution and drying using gas-fired dipping ovens.