Karsan (IFC-46286)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Turkiye
Geographic location where the impacts of the investment may be experienced.
Specific Location
Bursa, Hasanaga
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
Approved
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
Dec 7, 2023
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
Karsan Otomotiv Sanayii ve Ticaret A.S.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Industry and Trade
  • Transport
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)
$ 37.76 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 35
Converted using 2023-12-07 exchange rate.
Loan Amount (USD)
$ 37.76 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 35
Converted using 2023-12-07 exchange rate.
Project Cost (USD)
$ 37.76 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 35
Converted using 2023-12-07 exchange rate.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Feb 23, 2024

Disclosed by Bank Jan 8, 2024

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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.

As stated by the IFC, the proposed investment is a senior A-Loan of up to EUR 35m to Karsan Otomotiv Sanayii ve Ticaret A.S., a Turkish manufacturer of conventional and electric light commercial vehicles (LCVs) and buses.
The IFC Loan aims at (i) refinancing Karsan’s transition to electric vehicles (EV) including the acquisition of EV-linked intellectual property rights; and (ii) financing working capital requirements linked to EV sales.

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.

As stated by the IFC, Karsan is a manufacturer and seller of commercial vehicles and spare parts with a special focus on conventional and electric LCVs and buses. The Company operates in four main fields: (i) strategic partnerships (including manufacturing, marketing, sales, and after-sales services for brands, which target growth in the region), (ii) contract-based production (iii) original equipment manufacturing, and (iv) integrated & industrial solutions.  

Karsan is owned by Türkiye-based Kiraça Holding A.S. (Kiraca Holding) with a 58.5% shareholding. Kiraca Holding is owned by the Kirac family. Kiraca Holding engages in automotive and in other industrial sectors with proprietary brands in automotive, automotive spare parts, and energy solutions. Karsan’s shares are publicly traded on the Istanbul Stock Exchange with a free float of 39.4%. Mr. Inan Kirac’s own direct shareholding is 2.0%.

As stated by Bloomberg, Karsan Otomotiv Sanayii ve Ticaret A.S. manufactures light commercial trucks and vans under Peugeot and Fiat licenses.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
Kiraca Holding AS Parent Company Industry and Trade owns Karsan Otomotiv Sanayii Ve Ticaret AS Client Industry and Trade

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: +1 202-473-3800
Fax: +1 202-974-4384

Client - Karsan Otomotiv Sanayii ve Ticaret A.S.:

Evren Ucak - Investor Relations Coordinator
Phone: +90 224 484 21 80
Email: evren.ucak@karsan.com.tr
Address: Ordu Cad. Emek Mah. No:10 34785 Sarigazi / Sancaktepe / Istanbul.
Website: https://www.karsan.com/en

Local Access for Project Documentation:

Address: Karsan Headquarters, Hasanaga Organize Sanayi Bolgesi, Sanayi Caddesi, No:53, 16280 Nilufer / Bursa

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

How it works

How it works