Kostal (IFC-50329)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Bulgaria
  • North Macedonia
  • Poland
  • Ukraine
Geographic location where the impacts of the investment may be experienced.
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."
Borrower
Kostal Mobility Holding SE
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 Amount (USD)
Not Disclosed
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 Feb 5, 2026

Disclosed by Bank Dec 18, 2025

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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.

According to the Bank’s website, the proposed investment is a senior, unsecured, sustainability-linked A loan of up to €150 million, committed in two tranches: (1) Tranche 1: up to €100 million, and (2) Tranche 2: up to €50 million to KOSTAL Mobility Holding SE. The Company is a Tier I player in the global automotive industry, known for innovative electronic solutions and leading the mobility transition. The Company is a fully owned subsidiary of Leopold Kostal GmbH & Co. KG (the Kostal Group), a German family business that develops high-quality electronic and mechatronic systems for automotive and industrial use. Founded in 1912, KOSTAL Group operates in 64 locations across 24 countries. In 2024, the KOSTAL Group employed over 20,000 people. IFC’s proposed €150 million loan investment consists of: (i) Tranche 1, which will support the Company’s capital expenditures and working capital needs in Bulgaria, North Macedonia, Poland, and Ukraine for 2025 – 2027, including research and development, product upgrades, and investments in energy-efficient machinery and specialized equipment; and (ii) Tranche 2, which is intended to help restart and grow the production in Ukraine once conditions allow, expected to be committed at a subsequent stage, but no later than December 2027.

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.

The project is a Category B project. Key E&S issues and risks associated with the Project include: (i) Kostal corporate’s E&S management and monitoring systems, (ii) management of labor and working conditions for the company’s direct and contracted workers, (iii) gender-based violence and harassment (iv) OHS and life and fire safety, (v) resource efficiency and management of wastes and effluents; and (vi) contractor management. In North Macedonia, additional issues and risks in relation to biodiversity and cultural heritage were considered.

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.

Kostal Mobility Holding SE is a fully owned subsidiary of Leopold Kostal GmbH & Co. KG (the Group), a German family business that develops high-quality electronic and mechatronic systems for automotive and industrial use. Founded in 1912, KOSTAL Group operates in 64 locations across 24 countries. In 2024, the KOSTAL Group employed over 20,000 people. 

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Kostal Mobility Holding SE Client -
- - - - Leopold Kostal GmbH & Co. KG Parent Company -

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.

Leopold Kostal GmbH & Co. KG
Group Treasury
Group Treasury
+49 (0) 2351 16-0
info@kostal.com
An der Bellmerei 1058513 Lüdenscheid, Germany
https://www.kostal.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