Pasabahce Egypt

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Sisecam Group (or the “Group” - http://www.sisecam.com.tr/en) is a prominent player in the global glass industry with 4.9 million tons of production capacity, across 43 production facilities. The Group is organized into four main subsidiaries split along business lines: Trakya Cam (flat glass), Pasabahce (tableware), Anadolu Cam (glass packaging) and Soda Sanayi (chemicals).  IFC has a long-standing relationship with Sisecam developed over 40 years. IFC has multiple investments with Sisecam group companies, holds equity in the Group and in the chemical business segment, and has outstanding loans to several of the Group’s glass and chemicals companies in Turkey, Bulgaria, Georgia and Bosnia Herzegovina. Ongoing supervision of the existing investments at Group level and glass business indicates the Group’s environmental and social performance is generally satisfactory. Environmental and Social Review Summaries (ESRS) for Sisecam Bond (33711) can be reviewed from the following link: https://disclosures.ifc.org/#/projectDetail/ESRS/33711 . Pasabahçe Egypt Glass Manufacturing S.A.E. (the “company” or “Pasabahce Egypt”), a glassware company incorporated in Egypt and controlled by Pasabahce Cam Sanayii ve Ticaret A.S. (“Pasabahce”) which is the flagship company of Sisecam Group’s glassware segment, was established in 2017. During the same year it acquired the operating assets of Pearl Glass Manufacturing Co. (“Pearl”), a local player in Egypt which had production facilities in an industrial zone in Giza, close to Cairo (https://goo.gl/maps/X75xN14AGYv). Pearl had an annual production level of about 8,100 tons before its assets were acquired by Sisecam Group. Capex plan included installation of additional production lines which increased the annual capacity to 23,700 tons in April 2018. In line with the plan, décor furnace installation is ongoing, and the company is also planning to have a cold repair investment, expected to start in the beginning of 2020, which is anticipated to further increase the net production level to 33,000 tons in 2022. The proposed IFC investment is a debt financing package to Pasabahce Egypt, for (i) partial refinancing of the acquisition of the existing glass production facility, working capital needs and renovations / upgrades including five new pressing lines and a décor, and (ii) proposed capex including cold repairs for capacity expansion (the “project”).