Kostal

pending

The proposed investment is a senior, unsecured, sustainability-linked A loan of up to €150 million (the “IFC Loan”), committed in two tranches: (1) Tranche 1: up to €100 million, and (2) Tranche 2: up to €50 million to KOSTAL Mobility Holding SE (the Company). The Company is a Tier I player in the global automotive industry, known for innovative electronic solutions and leading the mobility transition. The Company is a fully owned subsidiary of Leopold Kostal GmbH & Co. KG (the Kostal Group), a German family business that develops high-quality electronic and mechatronic systems for automotive and industrial use. Founded in 1912, KOSTAL Group operates in 64 locations across 24 countries. In 2024, the KOSTAL Group employed over 20,000 people.?? IFC’s proposed €150 million loan investment consists of: (i) Tranche 1, which will support the Company’s capital expenditures and working capital needs in Bulgaria, North Macedonia, Poland, and Ukraine for 2025 – 2027, including research and development, product upgrades, and investments in energy-efficient machinery and specialized equipment; and (ii) Tranche 2, which is intended to help restart and grow the production in Ukraine once conditions allow, expected to be committed at a subsequent stage, but no later than December 2027 (the “Project”).