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Senior secured loan of up to US$ 28m to Yildirim Albanian Mining Investments Sh.p.k. and Albchrome Sh.p.k. for the purpose of the acquisition of Albchrome Holding Sh.p.k. by Yildirim Holding A.S.. The loan will consist of two facilities: Facility A of up to US$ 8,400,000 will be provided to refinance the debt of Albchrome outstanding at the date of the acquisition, and Facility B of up to US$ 19,600,000 will be to partially refinance the Group's funding of advance for the acquisition.
Project Objectives
The new ownership will bring to Albchrome a possibility to distribute its products to a wider and more diversified customer base while Albchrome will benefit from Yildirim's managerial and technical expertise in terms of operation optimisation and transfer of skills. The Bank's participation will result in the development of a Low-Carbon and Climate- Resilient Roadmap for Albchrome.
The Project is fully in line with the Bank's Strategy for Albania (2020-2025) which identifies promoting energy efficiency and enhancing private sector competitiveness as strategic priorities in the country, and with the Strategy for Extractive Mining Industries (2018-2022), which supports improvement of operational efficiencies in mining projects and key metal extraction for construction and renewable energy industry. Additionally, the Project is fully in line with the Bank's Green Economy Transition Approach 2021-2025 (BDS20-082/F).
ETI score: 64
Competitive:
The project will enhance Albchrome's integration into the global ferrochrome value chain. Additional capex investments and other measures planned by the new owner, it will contribute to a reduction in production costs and improvements in operational efficiencies. Albchrome will benefit from synergies in terms of logistics afforded by Yildirim who will also create new market opportunities for the supply of ferrochrome produced in Albchrome's smelters.
Well-Governed:
The Bank's participation in financing this acquisition will result in the development of a Low-Carbon and Climate-Resilient Roadmap for Albchrome through a TC funded study. The work will start with a gap analysis of the company's corporate climate governance and management practices and systems in-line with the EBRD's Corporate Climate Governance (CCG) Assessment Methodology and TCFD Recommendations. Based on the findings, the consultant will propose the most appropriate reporting systems, the best targets and key performance indicators, the disclosure requirements and the capacity building needs. The consultant will also develop corresponding mitigation and adaptation measures to be implemented to achieve the targets and define the key elements of Albchrome's climate strategy and produce a climate roadmap to support the implementation of priority actions.
Client Information
YILDIRIM INTERNATIONAL MINING INVESTMENS
Yildirim Albanian Mining Investments Sh.p.k, is an Albanian company, which is ultimately 100% owned by Yildirim International Investment Holding BV, a subsidiary of Yildirim Holding A.S., a vertically integrated Turkish industrial conglomerate ("Yildirim" or the "Group"); and Albchrome Sh.p.k., an Albanian mining company ("Albchrome").
USD 28,000,000.00
Senior secured loan of up to USD 28m.
USD 97,670,500.00
The Bank's additionality is derived from i) provision of missing long-term financing in the country to match the life of investments in local mining sector; ii) the Bank's support to achieve higher standards through development and implementation of an Environmental and Social Action Plan (ESAP); iii) the Bank's support to develop a corporate climate governance plan (climate change roadmap).
Categorised B (2019 ESP) and high risk due to air emissions and occupational health and safety risks. An Environmental and Social (E&S) Due Diligence conducted in Q1 2021 by an independent consultant (including a site visit by a local team) indicated that Albchrome operate in line with the Albanian requirements but need to align their corporate E&S management systems with the Bank's Performance Requirements. The main E&S risks are related to air emissions from the smelters (and overall alignment with Best Available Techniques) and occupational health and safety (especially for the underground operations). An ESAP was agreed with Albchrome in February 2021. Key E&S risks and impacts related to this transaction include commitment from the Group to implement the ESAP agreed early 2021, potential restructuring/redundancy within Albchrome staff, and corporate E&S management system. Environmental and Social (E&S) due diligence will be undertaken in-house and will include a review of a Corporate Questionnaire, progress on ESAP implementation, and interviews with the Group. It is unclear if the project is Paris aligned for climate mitigation and additional assessment is required for the determination. The project is deemed not significantly exposed to physical climate risks and is considered Paris aligned for Adaptation. However, it is recommended to conduct more detailed assessment for identification of climate resilience improvements with regards to exposure to higher probability hazards like water stress, wildfires and mass movement.
Preparation of Low-Carbon and Climate-Resilient Roadmap. The main objective of the assignment is to assist Albchrome in developing a roadmap with a detailed action plan to achieve best practice Corporate Climate Governance and develop a climate strategy. Funding source is EBRD Shareholder Special Fund.
Serdar Ate?, Structured Finance Manager Yildirim Holding A.S.
serdar.ates@yildirimgroup.com
+90 212 290 30 80
YILDIRIM Tower, Maslak Mahallesi, Tasyoncasi Sok. No:1C B2 Blok, 34485 Sariyer / Istanbul Turkey