Financed ProjectsHayat Kimya Türkiye

Identification Code:

OP/14/0016

Total Operation Cost:

66.000.000

Maturity:

108 months

Operation Status:

Description and Purpose of the Operation:

Participation in a syndicated Long-Term Senior Debt Facility to Hayat Kimya Sanayi A.S. in order to finance the Company's production vertical integration project, respectively a new spunbond non-woven production line and a polyethylene film packaging line in the Company's existing Izmit plant in Turkey.

Countries of Operation:

Türkiye (100,00 %)

Financial Product:

Loans

Sector:

Consumer Staples

Domain:

Private

Borrower/Client:

Hayat Kimya Sanayi A.S.

Co-Financiers/Participants:

Deutsche Investitions und Entwicklungsgesellschaft mbH Oesterreichische Entwicklungsbank AG Cordiant Capital on behalf of Cordiant Emerging Loan Fund IV

Guarantors/Sponsors:

Mr. Ahmet Yahya Kigili, the founder of the Hayat Kimya Group

Developmental and Regional Cooperation Impact:

BSTDB participation in the operation would help bring positive social and economic development impact as it will provide the Black Sea market as well as the neighboring regions with high quality products at affordable prices for the consumers. It will create additional employment in Turkey. Moreover, being an investment into vertical integration of the Company's production, the operation will contribute to imports substitution having a positive impact on the overall Turkish economic development.

Environmental Classification and Impact (summary):

The operation has been assigned the B Category as the environmental, labor, health and safety risks and impact associated with installation of new production lines within an existing facility are considered to be limited and not likely to be significant, and the existing issues are site specific and can be effectively prevented and mitigated by adhering to generally recognized performance standards, design criteria and guidelines for this type of industry. The production facilities in Izmit have instituted the appropriate environmental and social management systems that are periodically audited and ensured that these are up-to- date and functioning properly. The management systems are cerified by TUV Thuringen e.V. and ensure that the Company can address any environmental and social risks and impacts in a structured and continuous basis and respond adequately in cases of emergency.

Operation Leader:

General Industries, Transport, Tourism 2

E-mail:

gitt2@bstdb.org