Arcelik LTF (IFC-45316)

Countries
  • Bangladesh
  • Turkiye
Geographic location where the impacts of the investment may be experienced.
Specific Location
Araihazar subdistrict in Narayanganj district, Bangladesh
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 10, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
ARCELIK AS
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Construction
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 160.45 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 305.06 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 290
Converted using 2022-06-10 exchange rate.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 2, 2023

Disclosed by Bank Oct 5, 2022

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The proposed investment is a senior, unsecured A-Loan of up to EUR150 million to finance Arcelik’s working capital needs in Turkey and construction of a new Singer (refrigerator, washing machine, television, AC devices and other household appliances) manufacturing facility in Bangladesh. The new facility in Bangladesh will be located in Bangladesh Special Economic Zone in Araihazar subdistrict in Narayanganj district, located 29 km away from the Dhaka city center and was built by the Bangladesh Economic Zone Development Authority between 2019 and 2021 in cooperation with Japan International Cooperation Agency. Construction work for the new plant is expected to start at the mid of May 2022 and will last around 14 months. After commissioning of the new facility, the company’s existing two Singer Bangladesh facilities located in Hemayetpur area in Dhaka will be closed with one of them turned into a distribution center for Singer Bangladesh.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

From the IFC's website:

Arcelik A.S. (www.arcelikglobal.com/en) is a leading manufacturer of consumer durables and consumer electronics headquartered in Istanbul, Turkey. The company has 30 production facilities in 9 countries (Turkey, Romania, India, Pakistan, Russia, Bangladesh, South-Africa, China and Thailand), several R&D design centers and performs sales in more than150 countries globally. Arcelik is publicly listed and the major shareholder is Koc Holding, the largest Turkish conglomerate. Arcelik produces refrigerators, washing machines, dishwasher, tumble dryers, oven, cookers, televisions, consumer electronics, small household appliances, and AC devices in its production facilities (thirteen of them located in Turkey, two in Romania, two in Bangladesh and the remainder in other countries). Among the company’s flagship brands are Arçelik, Beko, Grundig, Arctic, Altus, Dawlance, Flavel, Blomberg, Elektrabregenz and Defy. The company also has two facilities for waste electrical and electronic equipment recycling in Bolu and Eskisehir, in Turkey. Turkey and Romania are the largest countries of operation in terms of production volume and staff numbers.

Arcelik’s current ownership structure is as follows: Koc Group (57.24%), Burla group (17.61%), Arcelik (9.97%), and publicly listed shares on Borsa Istanbul (15.18%).

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Arcelik A.S. Client Industry and Trade
- - - - Koc Holding AS Investor Finance

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

Client - Arcelik AS:

Pinar Sahinci - Treasury Manager
Phone: +90 212 314 3195
Email: pinar.sahinci@arcelik.com
Address: Karaagaç Caddesi 2-6, Sütlüce, 3445 Istanbul, Turkey
Website: www.arcelikglobal.com/en

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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How it works