SSL Bosnia III

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 €39 million (approximately US$50 million) of financing to SSL in two successive investments in 2007 and 2010 for its acquisition and post-privatization investments to turnaround its operations. Total outstanding IFC loan is US$31 million equivalent.The proposed expansion project is expected to cost US$65 million and will comprise (i) a capacity increase from 365 thousand tons/year (tpa) to 500 thousand tpa leading to economies of scale; (ii) improvements in energy and resource efficiency and reduction in energy costs; (iii) improvements in SSL’s operational efficiency through renovation and equipment upgrades and additional infrastructure; (iv) a waste management project to improve emissions and waste water treatment and (iv) some permanent working capital financing to SSL.