introduction to ifc downstream - arda.africa

Introduction To IFC Downstream

By: Olaf Schmidt - Investment Manager, IFC

October 2020

Agenda

• IFC Overview• IFC Experience and strategy in

the Downstream/Chemicals Sectors

• Annex I - Case Studies of IFC’s investments in the sector

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IFC Overview

3

Conciliation and arbitration of investment disputes

Guarantees of private sector investment’s non-

commercial risks

Interest-free loans and grants to governments

of poorestcountries

Loans to middle-income and credit-worthy low-

income country governments

Solutions in private sector development

IBRDInternational Bank for Reconstruction and

Development

IDAInternational

Development AssociationIFC

International Finance Corporation

MIGAMultilateral Investment and Guarantee Agency

ICSIDInternational Center for

Settlement of Investment Disputes

Long investment horizon: up to 10-12 years, both equity and debt

Reduced political risk through government relations and preferred creditor status (i.e. access to foreign currency). The entire IFC financing is exempt from withholding taxMore than 108 offices in 100 countries with increased focus on local presence and expertise

Local currency financing in 40+ currencies providing natural hedging

Counter-cyclical: diversified source of funding available across economic cycles

Sustained emerging markets appetite: IFC promotes economic development in these regions

World Bank Group reputation and stamp of approval

In house deep industry expertise through seasoned industry specialists and advisors

Sustainability: IFC is an investor focused on development impact and climate change

IFC’s Unique Proposition Active Portfolio as of FY20: $60bn

I. IFC Overview

II. IFC Experience and strategy in the Downstream/Chemicals Sector

III. Annex I - Case Studies of IFC’s investments in the sector

Agenda

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Subsectors

Categories

• Distribution (Fuel storage, gas stations, LPG terminals)

• Petrochemicals (oil and gas downstream): intermediate chemicals, fine chemicals: Paint and adhesives; Resins, Synthetic rubber and artificial synthetic fibers and filament manufacturing

• Refineries • Inorganic chemicals like salt-based chemicals: Caustic Soda, Chlor-alkali

• Specialty Chemicals

• Nitrogen fertilizer• Phosphate fertilizer• Potash fertilizer• Compound fertilizers• Special fertilizers (slow released or bio fertilizers)

• Other agricultural chemicals (pesticides, etc.)

• Cement• Clinker• Concrete• Concrete pipes and blocks

• Glass as a construction material

• Flat glass• Float glass

• Integrated steel works• Aluminum• Copper• Iron and steel• Other metals: tin, tantalum, tungsten, etc.

• Metal cans and other metal containers

• Steel pipe and tube• Re-rolling and drawing of purchased steel

• Wires• Metal sheets• Ball bearings• Mini mills• Coated products

• Ceramic tiles• Bricks and other clay products

• Plastic pipes• Sanitary ware• Quarried construction materials (asbestos, crushed stone, aggregates, granite block, sand, etc.)

• Industrial ores

Notable Clients

• Axion I and II, Aneka Gas, Dongyue Group, Birla Group, Braskem Idesa, Camlin Fine Sciences, Fangote, DCM Shriram, Deepak Fertilizers, Dewan Salman Fibre, Engro, Galaxy Chemicals, GPC, Gropo Solid, Kontsern, Laxmi, Mpei, PAE, Panca Amara, Sisecam, SNF, SRF, Vinavil, Turkiye Petrol, etc.

• Indorama, Cibrafertil, Egyptian Fertilizers, ETC Group, Fertiplant East Africa, Indorama Eleme, Jordan India Fertilizer Company, Kuibyshevazot Pao, OCI, Paribara, Wienco Liberia, Yara International, etc.

• Alexandria Development, Arab Concrete Products Company, Arabian Yemen Cement, Cimenterie de Lukala, Cimko Cimento, Jambyl Cement, Nyumba Ya Akiba, PPC, Sagar Cements, Shwe Taung Cement, Titan Cement, etc.

• JSC Saatksio, Juniper Glass, Kioo, Middle East Glass, NSG UK, Sisecam Soda Lukavac, Sphinx Glass, Trankya, Turkiye Sise Ve Cam Fabrikalari, etc.

• Aluar Aluminio Argentino, Arcelormittal, Armco do Brasil, Assan Aluminyum Sanayi, Century Sunshine, F.V., M.< Integrated Steel Mills, Ramkrishna Forgings, Safal Steel, Stomana Industry, etc.

• Ferrum, Mid East Nigeria, Sichuan Jiuda Salt Manufacturing, etc.

IFC’s 6 subsectors of its base materials portfolio

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1 Downstream 2 Fertilizers andCrop Protection

3 Cement 4 Glass 5 Metals 6 Others

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IFC aims to scale up own account climate investments to an average of 35% during the period FY21-25

§ Deepak fertilizer (India): N2O abatement installations in four nitric acid production facilities result in GHG savings of 1.4M tons CO2e p.a. There was no climate component in this chemical / fertilizers project until the team pursued the N2O destruction.

§ Eleme I (Nigeria): The Project reduced gas flaring in Nigeria, as it uses approximately 30 mmbtu of gas annually, of which a significant amount is associated gas (which was mostly flared). Now the carbon remains encapsulate in the product (urea).

§ EVTL (Pakistan): Fuel savings due to more efficient transport /storage of LPG. Substitution of LPG for kerosene/firewood. Installation of solar.

§ Project Tire (India): Project uses more recycled rubber than industry average. Capex for recycling & processing recycled rubber (e.g. shredders) and the building to be EDGE certified are confirmed as climate related.

§ Camel (China): Recycling of lead acid batteries

Examples35% of IFC investment are targeted to the below realms

Carbon sequestration

Smart AgriRecycling

Resource efficiency

Energy efficiency and renewables

Import substitution

Policies contribute to transition to a more sustainable downstream/chemicals industry - IFC aims to unlock them

through Upstream and WBG collaboration

Source: Trends and recommendations from the IEA

Use and disposal policiesProduction policies

§ Directly stimulate investment in R&D of sustainable chemical production routes and limit associated risks. Unlock finance in areas with potential for sustainable returns, but with a low likelihood of attracting, under present circumstances, independent private investment.

§ Establish and extend plant-level benchmarking schemes through public-private co-operative frameworks, for energy performance, and CO2 emission reductions targets, and incentivize their adoption through fiscal incentives.

§ Pursue effective regulatory actions to reduce CO2 emissions. These need to include support to avoid the impact of asymmetric regional pricing pressures and targeted support to spur the creation of initial niche markets where necessary.

§ Require industry to meet stringent air quality standards, such as those of the WHO, by developing and installing air pollution control technologies, fuel shifts, and improved fuel quality.

§ Fuel and feedstock prices should reflect actual market value. Ensure that fuel subsidies designed to facilitate clean energy access (e.g. subsidies for liquefied petroleum gas for clean cooking) are precisely targeted and do not inhibit shifts towards alternative chemical feedstocks.

§ Reduce reliance on single-use plastics other than for essential non-substitutable functions. Policy mechanisms include introducing deposit-return systems for reusable goods (e.g. beverage containers) or fiscal instruments (such as a revenue-neutral plastic consumption tax, the proceeds of which could be directed to preventing and mitigating plastic pollution).

§ Improve waste management practice around the world, both to increase recycling and to drastically reduce plastic waste leakage. Examples include prohibiting or implementing a tax on the disposal in landfills of all recoverable waste and improving the separation and collection of recyclables at source.

§ Raise consumer awareness about the multiple benefits of recycling consumer goods, the environmental ills associated with poor waste management, and the most effective policy interventions.

§ Design products with disposal in mind by incentivizing designers and manufacturers downstream of chemical producers to adopt designs that optimize the use of materials, enable reuse, and facilitate closed-loop recycling.

§ Extend producer responsibility beyond production to appropriate aspects of the use and disposal of chemical products, for example, through systems that levy fees penalizing the limited recyclability of a material and actions that complicate waste separation.

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IFC follows a screening approach to invest in a way that is consistent with the Sustainable Development Goals

What we don’t do

Always looking the projects through the SDGs lens…

What we do

We invest in best-in-class process technologies and practices for resource and energy efficiency

Circular economy approaches minimizing use of virgin materials (redesign, reduce, reuse, recycle)

We invest to achieve import substitution and domestic value chain creation

We Invest to support production at scale and economic complexity

We support projects with strong employment benefits, reach to farmers and impact to SMEs

We don’t invest in chemicals that have a cost-effective and more environmentally friendly alternative

We don’t invest in manufacturing of coal-based products

We don’t partner with Sponsors who don’t have a strategic vision for progressive decarbonization

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Circular economy

An example: Investing in chemicals to tackle plastics waste: IFC focuses on circular economy and source reduction if no

alternative viable materials are available

Engineering plastics Functional plastics

Afford light weight parts which withstand high stresses and heat in performance applications. (Cars, planes and machinery)

Provide properties not accessible with other materials – Laminates, water and gas barriers, life-saving devices, cables, etc.

Durable plastics

Used for everyday items with long life, such as pails, buckets, and household articles, clothing. But also finishing lines, nets, containers, PVC pipes, etc.

Safety/Security provider Convenience enhancer

E.g. Blood bags, medicines and medical equipment packaging, syringes; food packaging; plastic packaging for emergency supplies such as water and food provided for disaster relief and humanitarian aid

E.g. Grocery bags and trash bags, single serving pouches, disposable cutlery and straws, wrapping for attractiveness and point of sale display, labels, tags, etc.

Long life plastics

Disposable plastics

ü Invest only if no alternative competitive material is available.

ü Invest to promote circular economy:

ü Redesign: Promote new materials such as bio-based plastics or compostable plastics to improve value chain waste footprint.

ü Recycle: IFC focuses on manufacturers that utilize more recycled input vs. virgin input than the industry’s average.

ü Recover value: Promote technologies that attempt to substitute incineration of plastics by recovering the value of chemicals molecules by reversing the polymerization process and recovering the monomers.

ü Promote production of materials that mitigate climate change (e.g. Materials for green buildings)

IFC approach

Focus investment area

If no alternative If no alternative If no alternative

If no alternative

36% of global

production (packaging)

IFC does not invest

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Optional Full color picture or highlight tinted photoSUSTAINABLE FUNDING OPTIONSMarket Standards

January 2014

June 2017

June 2017

IFC Blue Taxonomy2020

IFC works with its clients on its Sustainable Funding Process

Sustainability-linked Loans / Bonds

Investment in Client’s Green Bond to finance/refinance green

assets

Green Loan

Green Eligible Use of Proceeds

Assessment of Client Portfolio

and Pipeline

Assessment of Client

Strategies

CSR/ESG/Sustainability

IFC

To

ols

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Egypt

Corporate Loan $15mnin local currency

equivalent

Expansion & modernization

2018

Mapei VinavilJSC “Concern Galnaftogas”

2005, 2007, 2011, 2013

Corp. Loan $21mnQuasi-Equity $44mn

Corp. & Syn. Loan $80mn Corp. & Syn. Loan $45mnCorp. & Syn. Loan $80mn


A Loan of US$94mnSyndication US$415mn

Greenfield ammonia production plant

2014

Panca Amara Utama

Axion II

A Loan of up to US$135mnSyndication up to

US$315mn

Expansion and upgrade of an existing refinery

2019

Ukraine

A Loan of US$232mnSyndication US$285mn

Largest greenfield petrochemical plant in

Mexico

2012

Etileno XXI (Braskem Idesa)

MexicoIndonesia

Argentina

Yara

A Loan of up to US$150mn

Emerging markets operations expansion

2017

South America / Africa

Kingenta

A Loan US$100mn Syndication US$105mn

Operations upgrade and expansion

Distribution services integration

2017

China

Tüpras

A Loan of US$100mn

Refinery upgrade and capacity increase

2018

Turkey

Cibrafertil

A Loan of up to US$40mn


2018

Brazil

Eleme II

A Loan US$100mnSyndication US$900mn

Brownfield expansion of a fertilizer plant

2018

Nigeria

Selected IFC’s Transactions in Downstream sector

Chemicals and Fertilizers

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Bayer, Ukraine – agrochemicalsUPL, India: pesticides, herbicidesAtul, India: pesticide intermediatesEngro Corporate, PakistanICS, Senegal: phosphoric acidIndo Jordan, Jordan: phosphoric acidEngro Chemicals, Pakistan: ammoniaTrigen II, Trinidad & Tobago: ammoniaFosfertil, Brazil: SSP, TSP, MSP, DAPGNFC, India: ammonia, ureaDeepak Nitrate, India: ammonia,Urea,DAPPQB, Bolivia: ammonium nitrateKuAz, Russia: ammonia, ureaIndo Egyptian, Egypt: phosphoric acidKoyo, China: ammonia, ureaOmimex (Abocol): ammonium nitrate,NPKJIFCO, Jordan: DAPJPMC, Jordan: phosphateEngro Emergency, Pakistan: ureaOCI, Egypt: ammonia, ureaParadeep, India: phosphateItafos, Brazil: phosphateEleme I and II, Nigeria: ammonia, ureaAbocol, Colombia: ammonium nitrate, NPKPAU, Indonesia: ammoniaNitron: fertilizer tradingYara: fertilzers production and distributionFertiplant, Kenya: fertilizer tradingKingenta, China: fertilizer production and distributionDangote, Nigeria: fertilizer productionCibrafertil, Brazil: fertilizers production and

distributionEFC, Egypt: fertilizer production

Fertilizers & Crop Protection

ERC Refinery, EgyptPSPC (Shell), PhilippinesStar Petroleum (Caltex), ThailandRefisan (Pecom), ArgentinaPetrotel-Lukoil, RomaniaAlliance Oil Company, RussiaAxion, Argentina: RefineryTüpras, Turkey, Refinery

Refineries

Petrochemicals

Continental Carbon of India Ltd.NPC, Thailand: gas crackerCopesul, Brazil: naptha crackerCopene, Brazil: naptha crackerSamsung, Korea: petrochem/aromatics complex restructuringHMC Polymers, Thailand: PPPetroken, Argentina: PPPoliteno, Brazil: PEIpiranga I & II, Brazil: PE, PP Indelpro, MexicoProfalca, Venezuela: PPGrupo Zuliano, Venezuela: petrochem complexSuzhou, China: PVCVinythai, Thailand: PVCEngro PVC, Pakistan: PVCTuntex, Thailand: PTARhodiaco, Brazil: PTARhodia-ster, Brazil: PTA/PETOxiteno, Brazil: EO/MEG Girsa, Mexico: EO/MEGPralca, Venezuela: MEGGidesa, México: EG, PSTrikem, Brazil: PSInnova, Brazil: styrene/PSDaaboul, Syria: LABJose Methanol, Venezuela: methanolKuAz, Russia: caprolactamEleme Petrochemicals, Nigeria: PE, PPXinao, China: Coal-to-DMEDCM Shiram, India: PVCHimadri, India: Coal tar pitch and carbon blackGalaxy Chemicals, India: SurfactantsEIPET, Egypt: PETEtileno XXI, Mexico: PE Nadezhda, Ukraine: LPGBulmarket, Bulgaria: LPGKokand, Uzbekistan: Fibers for textileSRF, India: BOPETSIMPA, Cote d’Ivoire: PE / PET

Others/Infrastructure

Inorganic Chemicals

Engro Polymers, PakistanKanoria Vizag, IndiaAtul Ltd, IndiaAlexandria Carbon Black, Egypt: Carbon blackContinental Carbon (CCIL), India: Carbon BlackMaanshan I & II, China: Carbon blackRain Calcining, India: calcined carbonPeroxythai, Thailand: hydrogen peroxideChengdu, China: potassium hydroxide & PVCProdesal, Colombia: caustic soda, chlorineMeghmani Finechem, India: caustic soda, chlorineMagadi Soda, Kenya: soda ashLukovac Soda, Bosnia: soda ashKanoria Chemicals, India: caustic soda, chlorineJiuda Salt, China: industrial saltBirla Carbon, China: Carbon BlackDCM Bharuch, India: Chlor-alkaliUkrplastic, Ukraine: Flexible plastic packaging

JPMC Terminal, JordanIFC / SCB FacilityEngro Vopak, Pakistan: Chemical terminalMesser, Trinidad & Tobago: industrial gasesOpet Petrolculuk, Turkey: fuel distributionAntai, China: metallurgical cokeEcogreen I & II, Indonesia: oleochemicalsDarong, China: specialty chemicalsGapco, Kenya: storage terminalZhong Chen, China: storage terminalGalnaftogaz, Ukraine: petroleum retailerDongyue, China: fluorine chemicals, organicsiliconeAtul, India: Dye and pesticide intermediatesHikal, India: PharmaceuticalsVinati Organics (JV), India: specialty chemicalsSRF, Thailand & South Africa: specialty chemicalsRabobank, Africa: commodity trade facilityBNP Paribas and SocGen, Africa: commodity trade facilityLaxmi Organics, India: specialty chemicalsRhodia, USA: supply chain financeCarbon Holdings, Egypt: Diversified Chemicals GroupBulmarket, Bulgaria (LPG)Nadezhda, Ukraine (LPG) distributionIndorama Port, Nigeria: Fertilizers export port terminal Aneka Gas, Indonesia: industrial gasesMapei / Vinavil, Egypt: Chemicals for Adhesives and PaintCamlin, India: Ingredients and performance chemicalsOmera LPG, Bangladesh: LPG distribution

IFC SECTOR EXPERIENCE

Contact information

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Kalim M. ShahChief Investment Officer,

Manufacturing Lead, Sub-Saharan Africa [email protected]

Ken Osei

Principal Investment OfficerSouthern Africa Manufacturing Lead

[email protected]

Musonda ChipaloPrincipal Investment Officer,

West and Central Africa Manufacturing [email protected]

Biju MohoandasPrincipal Investment Officer

East Africa Manufacturing [email protected]

Olaf SchmidtInvestment Manager, Manufacturing, Health & Education, Real

Estate, Retail & Hotel Investments, Sub-Saharan Africa [email protected]

mailto:[email protected]

mailto:[email protected]

Annex ICase Studies

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IFC Project – Eleme I and II

Projects Description:

• US$150 million loan to Indorama Eleme Fertilizer & Chemicals Limited.

• The IFC investment was utilized for the construction and operation of a 1.4 million metric tons per annum(mtpa) nitrogenous fertilizer plant within the client’s existing petrochemicals complex in Nigeria.

Sponsors:

• The Indorama Group is a long standing IFC client based in Indonesia. Since IFC’s first investment in the 1990s, it has grown into a global business entity with over US$16 billion in revenues. Indorama is the world’s largest producer of polyester and PET resins as well as one of the fastest growing global petrochemical producers with a presence in 35 countries. The group’s existing fertilizer plant in Nigeria is the world largest single stream Urea Fertilizer plant with a capacity to produce 2.3ktpd of Ammonia and 4.0ktpd of granulated urea.

Project Cost & IFC Investment:

• Total project cost: ~US$1.1 billion. • IFC Investment: A Loan of US$100 million,

a MCCP loan of US$50 million, and mandated lead arranger for US$850 million in B and parallel Loans through syndications.

IFC’s Additionality:

IFC's participation has been able to:(i) provide long-term financing beyond what is generally available in the market;(ii) mobilize large amounts from other DFIs and commercial banks; (iii) continue support to a strategic client as it expands into high-risk markets through advice

on adopting best practice environmental and social standards, technical and insurance; (iv) find innovative solutions to maximize development impact by helping bring in

entrepreneurship, jobs, food security, community engagement, and (v) help diversify the economies within which the client invests;

Nigeria

• US$1 billion loan to Indorama Eleme Fertilizer & Chemicals Limited.

• The IFC investment in Nigeria will double the urea capacity of the existing plant from 1.4 million tons per annum to 2.8 million tons per annum.

ELEME I (2012) ELEME II (2018)

• Total project cost: ~ US$1.2 billion• IFC investment of US$150 million in long-

term debt• Additional US$225 million in B/ parallel

loans through syndications.

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IFC Project – GTST Mauritania

Project Description:

• Investment of up to US$40 million by IFC to be part of a revolving structured commodity trade finance facility (the “Facility”), arranged by Societe Generale Corporate & Investment Banking for Addax Energy S.A.

• The Facility will be used to finance imports of petroleum products in Mauritania for the period 2018-2020.

Sponsors:• Addax Energy SA is the trading arm of Oryx Energies SA (“Oryx”). Oryx is a Swiss

company, majority-owned by private investment group, The Addax and Oryx Group Plc (“AOG”). Oryx has a presence in over 20 sub-Saharan countries and it sources, supplies, stores and distributes the oil and gas products needed by consumers, businesses and maritime operations across sub-Saharan Africa for over 30 years.

Project Cost & IFC

Investment:

• The total amount of the Facility is US$ 255 million, with a proposed IFC investment as a direct lender of up to US$40 million.


IFC's participation will fill the financing gaps in Mauritania caused by (i) the recent rise in oil prices, (ii) the increased in domestic demand for oil products and (iii) the related increase in funding needs.

Mauritania

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IFC Project – YARA Corporate Loan


• US$150 million corporate loan to Yara International ASA, one of the world’s largest fertilizer producers and distributors.

• The IFC investment will be utilized for investments in fertilizer production on Zambia and distribution in Brazil and Colombia.

Sponsors:• Yara is a leading global producer and distributor of nitrogen-based fertilizers, such as

ammonia and urea as well as complex fertilizers (NPKs). • It maintains leadership positions in key international markets such as Europe and Latin

America. Yara is a public company traded on the Norwegian Stock Exchange.


• Total project cost: estimated at around US$383 million. • IFC investment - A loan for IFC’s own account for US$150 million.


ü Political risk mitigation: Yara expects that the partnership with IFC will help mitigate some of the risks related to investing and operating in countries with complex and fragile political environments, where Yara doesn’t have prior investment experience, such as Zambia.

ü Yara highly values and expects to benefit from IFC's deep knowledge of local business and regulatory environments, relationships with local governments, technical and industry expertise.

ü Also, successful implementation of the Project will create strong demonstration effect for localization of operations by other global fertilizer producers into emerging markets.

WorldRegion

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IFC Project – Engee Manufacturing


• US$39 million loan to Engee Manufacturing Limited, a leading manufacturer of PET resin used in packaging for soft drinks, bottled water, and other household and pharmaceutical products.

• The IFC investment is in a Continuous Polymerization plant which would source more than 20% of its raw materials from local, waste plastics, strengthening Nigeria’s recycling and manufacturing sectors.

Sponsors: • Engee is a subsidiary of Jotna Group, which was founded in 1965 and has been operating in Nigeria for over 45 years. Jotna is one of the leading manufacturers of beverages, preforms, caps and bottle grade PET resins in Nigeria.


• Total project cost: estimated at around US$127 million. • IFC investment - A loan for IFC’s own account for US$24 million and an International

Development Association’s Private Sector Window Blended Finance Facility of $15 million.


IFC's participation has been able to:(i) provide long-term financing beyond what is generally available in the market;(ii) provide IFC's in-house technical, insurance, and EH&S expertise (iii) introduce international best practice standards to the client as it implements its plastics

recycling program in Nigeria. (iv) IFC will also provide Engee with Advisory Services support to implement a plastics waste

recycling programme specifically for bottle-grade PET supply chain development.

Nigeria

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IFC Project – Axion Energy

Sponsors:• Axion Energy, now part of Pan American Energy (PAE), is the third largest distributor of fuels

in Argentina. It markets its products through its own retail chain. It is Argentina’s largest privately-owned integrated energy company.

Project Description

• Upgrading and expansion of the Campana Refinery owned by PAE and the country’s third largest refinery with capacity of about 90,000bpd, representing about 15% of the nation’s installed capacity.

• The Project will (i) enhance the quality of its fuels and reduce the refinery’s sulfure dioxide emissions, (ii) expand Axion’s retail network and branding efforts, and (iii) make other investments to improve efficiencies.

Argentina


• Total project cost of at least US$1.5 billion • IFC investment of US$420mm (US$86 million A loan; B-loan US$334 million)


IFC's role :ü (i) providing its own funds in a tailored repayment schedule designed to match the cyclical

nature of the refinery sector, ü (ii) mobilize additional financing from IFC's syndicate banking network, ü (iii) provide input and assurance that the company's EH&S and risk mitigation programs are

compliant with best practice.

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IFC Project – Tüpras


• US$100 million loan to Turkiye Petrol Rafinerileri A.S (“Tüpras”).• The IFC investment will be used to install new sulfur recovery units to optimize its

crude oil processing capability and improve sulfur emissions. The new investments will also include an increase in the capacity of the continuous catalyst regeneration platformer in İzmir Refinery to increase Tüpraş’ global competitiveness by allowing the company to produce more value-added products using the same feedstock.

Sponsors:• Tupras is the only crude oil refining company in Turkey. With the total capacity of

28.1 million ton per annum (mtpa), it is the 7th largest crude oil refining company in Europe and the 26 th largest in the world. Tupras has four refineries in Turkey: Izmit (11.0 mtpa), Izmir (11.0 mtpa), Kirikkale (5.0 mtpa), and Batman (1.1 mtpa).

Project Cost & IFC

Investment:

• Total project cost: estimated at around US$278 million.• IFC Investment: A Loan of up to US$100 million.


IFC's participation will (i) provide long-term financing beyond what is generally available in the market,

which is key in this sector; (ii) provide IFC's in-house technical, insurance, and EH&S expertise.

Turkey

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IFC Project – Galnaftogaz Long-term Partnership

Company Description

• Public Joint Stock Company “Concern Galnaftogaz” (“GNG”) is an independent petroleum products distribution company based in Ukraine. GNG operates the second largest filling station network in Ukraine with distribution of gasoline, diesel, and liquefied petroleum gas. GNG primarily operates retail filling stations under the OKKO brand. IFC has partnered with GNG since 2005 to upgrade its infrastructure and to expand its distribution network

• Location: Throughout Ukraine

IFC Engagements

2005 IFC invested $25mm, consisting of a $21mm senior loan and a $4mm subordinated loan

2007 IFC invested $100mm, consisting of a $30mm senior loan, $50mm of syndicated senior loans, and a $20mm subordinated loan

2011 IFC invested $65mm, consisting of a $15mm senior loan, $30mm of syndicated senior loans, and a $20mm subordinated loan

2012 IFC invested $85mm to support a joint venture between GNG and ADM Capital

2013 IFC invested $80mm, consisting of a $15mm senior loan and $65mm of syndicated senior loans

Ukraine

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