SSL Bosnia II

completed

Sisecam Soda Lukavac d.o.o. (“SSL”) is involved in the production of light and heavy (dense) soda and other products based on soda ash. SSL was created from the transfer of soda ash production assets from a loss making state owned soda ash producer. IFC provided a € 24 million loan to SSL in 2007 to finance initial post-privatization investments of SSL. Total outstanding IFC loan is €20.3million. SSL is currently undertaking a €32 million revamping investments to accelerate the turnaround after privatization, together with the restructuring of short-term debt. The project is expected to (i) increase SSL’s operational efficiency through renovation and equipment upgrades that will also increase capacity, leading to economies of scale, (ii) improve environmental performance through water treatment and air emissions investments (iii) reduce energy costs and, (iv) replace some short-term debt.