KURUM INTERNATIONAL SH.A.
Status: Approved investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Kurum International of Albania (KI), the country's single steel producer and largest energy consumer, has acquired 4 operational (since 1960s) hydroelectric power plants (HEPPs) with a total capacity of 76.7 MW from the Government of Albania (GoA) in an international competitive bid to privatize the Albanian power sector. KI's rationale in buying the HEPPs is to secure most of its annual energy needs and enable KI to better manage its energy cost, hence strengthening KI's overall competitive advantage in a cyclical industry.
What is our funding objective?
FMO will invest in a senior loan, under an IFC umbrella. The investment aims to secure the power supply to the country's largest private employer in a key industry for Albania and the region. At the same time investments will enhance grid reliability by refurbishing a dam and replacing outdated equipment.
Why do we fund this investment?
FMO's investment will close a crucial funding gap; long-term finance is not readily available in Albania. FMO's investment is therefore additional to this project. With this investment a new environmental and social risk analysis will also be done, which will be more inclusive of the local community and apply the highest international standards for environmental and social risk management.
- Website customer/investment
- http://www.kurum.com.tr
- Region
- Europe & Central Asia
- Country
- Albania
- Sector
- Energy
- Effective date
- 12/19/2013
- Total FMO financing
- EUR 27.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+