A green investment by IFC in Assan Alüminyum (Assan), a leading Turkish manufacturer of aluminum flat-rolled products, will support increased exports and the country’s global competitiveness while helping to mitigate climate change.
IFC is providing Assan, a subsidiary of Kibar Holding and a long-standing client since 1994, with a $90 million green loan to support its multi-year investment program, delayed by the COVID-19 pandemic. The funds will help Assan enhance production efficiency through modernization, reduce its carbon footprint by increasing its share of renewable sources in energy consumption and scrap usage in production, and expand its processing capacity by 60,000 tons annually.
Assan has the largest continuous casting capacity globally and aims to achieve carbon neutrality by 2050. Through the investment program, Assan will be able to swiftly adapt its production process to changing market demand in Europe, its primary export market, and strengthen competitiveness through improved energy efficiency.
“We’re thrilled to announce that we’ve been granted our first green financing from IFC. Sustainability is at the heart of everything we do, and this demonstrates our dedication to building a better tomorrow for all,” said Kibar Holding’s CEO Haluk Kayabaşı.
Before the financing, IFC helped Assan develop a green finance framework that aligns with the Green Loan Principles and Green Bond Principles. The framework establishes clear and quantifiable sustainability targets and facilitates Assan’s access to green financing instruments to support its growth. IFC’s financing aligns with Assan’s green finance framework as a 100 per cent climate investment.
“IFC’s green investment will allow Türkiye’s largest manufacturer of aluminum flat-rolled products to significantly strengthen its position in global markets while reducing its carbon footprint,” said Wiebke Schloemer, IFC Director for Türkiye and Central Asia. “That will help the country meet its ambitious climate goals and, we hope, incentivize other key players to improve their efficiency and capacity.”
IFC has supported private sector development in Türkiye for more than 50 years, with investments of nearly $10 billion in the last decade alone. Türkiye represents IFC’s third-largest country exposure globally, with a committed portfolio of close to $4.6 billion as of March 2023.