Borcelik Fin. (IFC-47144)

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
Gemlik
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
Proposed
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
Oct 24, 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
Borcelik Celik Sanayii Ticaret 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)
$ 130.00 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.
Loan Amount (USD)
$ 130.00 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)
$ 530.00 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.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Oct 3, 2024

Disclosed by Bank Sep 30, 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 on the project disclosure page, the IFC is considering a financing package of up to US$210M consisting of a senior, corporate A loan of up to US$80M, a MCPP Trust Loan of up to US$50M, and a B1/Parallel loan of up to US$80M to Borcelik to finance the expansion program, which will include: the installation of a 1.6 mt Pickling Line and Tandem Cold Mill (PLTCM) upstream line combined with the 0.5 mt Continuous Galvanizing and Annealing Line (CGAL) downstream line on the industrial premises/land adjacent to the Gemlik Plant.

Borcelik has acquired ownership of the adjacent closed-out Borusan Pipe factory land, a subsidiary of Borusan Group, which has an overall area of about 125,000 square meters and is bordered with other industries. Borcelik plans to demolish a few small steel structures on about 7800 m2 while retaining the majority of the existing structures and constructing about 9300 m2 of new areas during the execution of the expansion work.

Borcelik The Group was a former IFC client until 2014 (# 20476), and its environmental and social (E&S) performance was satisfactory based on IFC supervision during the project's lifetime.

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

As stated on the project disclosure page, the total cost to implement the Project (including working capital) is estimated at up to US$530 million. IFC is considering a financing package of up to US$210M in senior loans consisting of i) an A loan of up to US$80 million for IFC’s own account; ii) a B1/Parallel Loan of up to US$80 million; and iii) a MCPP Trust Loan of up to US$50 million.

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, Borçelik Celik Sanayii Ticaret A.S. is a JV between Borusan Holding A.S. (“BH” or “Group”) and ArcelorMittal, one of the largest global steelmakers (https://www.borusan.com/en/home).
Founded in 1990, Borcelik is the second largest private sector flat steel manufacturer and galvanized steel producer in Turkiye (https://www.borcelik.com/en). The Company has a production capacity of 1.5 million (m) tons of hot dip galvanized steel, cold-rolled steel, and hot-rolled steel, all of which are industrial raw materials that serve  the automotive, white goods, and construction sectors, among others.
The parent, BH, is a diversified Turkish conglomerate with primary operations in steel manufacturing and the distribution of cars and industrial machinery. Borcelik’s main plant is located at Gemlik (near Istanbul in Turkey) in a 240,000 square meter (sqm) area. Two smaller steel service centers are are located in Bursa (20k sqm) and Manisa (10k sqm).

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
ArcelorMittal SA Parent Company Industry and Trade owns Borcelik Celik Sanayii Ticaret AS Client Industry and Trade
Borusan Holding AS Parent Company Industry and Trade contracts with ArcelorMittal SA Parent Company Industry and Trade
Borusan Holding AS Parent Company Industry and Trade owns Borcelik Celik Sanayii 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 - Borcelik Celik Sanayii Ticaret AS:

Narin Yenen
Phone: +90 532 446 08 90
Email: nyenen@borcelik.com
Address: Ata, 125 Nolu Sokak No:1, 16601 Gemlik/Bursa
Website: www.borcelik.com

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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