DFF - Kipas Mensucat Earthquake Response Facility (EBRD-54930)

Countries
  • Turkiye
Geographic location where the impacts of the investment may be experienced.
Specific Location
Kahramanmaras
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
  • European Bank for Reconstruction and Development (EBRD)
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
Nov 19, 2024
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
KIPAS MENSUCAT ISLETMELERI AS
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • 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)
$ 26.52 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 25
Converted using 2024-11-19 exchange rate.
Project Cost (USD)
$ 26.52 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 25
Converted using 2024-11-19 exchange rate.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ EBRD website

Updated in EWS Feb 24, 2025

Disclosed by Bank Nov 19, 2024

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Can you contribute information about this project?
Contact the EWS Team

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.

According to the Bank’s website, the EBRD will provide up to EUR25 million loan to Kipas Mensucat to support Company's funding needs to (i) repair damaged factory buildings and replace/repair new machinery, (ii) support working capital to pay accrued VAT and corporate taxes and (iii) pay accrued social security premiums while supporting other HR related expenses.

Project objective is to mitigate the impact of the devastating earthquake and EBRD loan proceeds will address subsequent working capital needs and maintain extra liquidity buffer. The support under the proposed loan is crucial to preserve livelihoods, entrepreneurial and human capital in the aftermath of the disaster. Adequate working capital will ensure the Company to continue its day-to-day operations without facing any disruptions.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Categorised B (2019 ESP). An external ESDD assessed Kipas' E&S management systems and post-earthquake operations, supported with supervision of Environmental and Socialist specialists from ESD. The Project's E&S risks are evaluated to be limited to the current operations, earthquake recovery and modernization efforts. The ESDD also included a site visit to Kipas' textile facility in Kahramanmaras, Türkiye.  

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Up to EUR25 million loan.

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.

Kipas Mensucat was incorporated in Türkiye in 2004 for the production and sales of yarn and fabrics. Kipas Mensucat is the largest integrated (i.e., open-end and ring yarn production, weaving, dyeing and denim fabric production) manufacturer in Türkiye and Europe with an annual production capacity of 100 million meters of fabric and 500 tons of yarn per day with more than 5,900 employees as of FY23. The Company's production facilities are located in Kahramanmaras. In FY23, Kipas Mensucat's consolidated revenues stood at EUR677mn and EBITDA of EUR264mn. 

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - KIPAS MENSUCAT ISLETMELERI AS Client -

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.

COMPANY CONTACT INFORMATION

Leyla Ogulmus
finansalraporlama@kipas.com.tr
+90-344-236-38-00
+90-344-236-33-07
https://www.kipas.com.tr/
Karacasu Karaziyaret Mahallesi Fatih Sultan Mehmet Caddesi No-1/A Dulkadiroglu, Kahramanmaras

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html

How it works

How it works