Cimsa secures US$70m green loan from IFC for sustainability initiatives

Türkiye-based cement manufacturer Cimsa, a unit of Sabanci Holding, has secured a US$70m green loan from the International Finance Corporation (IFC), a member of the World Bank Group. The loan, announced on 4 November, has a five-year maturity, including a two-year grace period for principal repayments. This marks Cimsa’s first green loan, highlighting its commitment to sustainable financing.

The funds will be allocated towards renewable energy projects, alternative fuel adoption, alternative raw materials, and product transformation. These initiatives are set to enhance operations at Cimsa’s Mersin, Eskisehir, and Afyon cement plants. The company plans to install solar photovoltaic panels as part of its renewable energy strategy.

Cimsa has been expanding its renewable energy capacity. In June, the European Bank for Reconstruction and Development (EBRD) provided a EUR25m (US$26.4m) loan for projects at its Eskisehir plant, including an 11MW solar installation, a 5MW waste plant and a silo upgrade.

Cimsa operates three cement plants in Türkiye and has international facilities, including a white cement plant in Bunol, Spain and a grinding facility in the US. The company recently acquired a 95 per cent stake in Ireland-based Mannok Holdings DAC, a move expected to increase the share of FX-denominated revenues to over 70 per cent of total income.

These developments are part of a broader sustainability drive. The IFC has been actively supporting projects in Türkiye, with plans to extend US$18bn in financing to the country between 2024 and 2026. This includes US$9bn from the IFC, alongside US$6bn from the International Bank for Reconstruction and Development (IBRD), and US$3bn in guarantees from the Multilateral Investment Guarantee Agency (MIGA).

Cimsa’s ongoing green initiatives, including a newly operational 7MW solar plant at its Bunol site and upcoming projects at its Afyon and Eskisehir facilities, underline its commitment to sustainability and efficiency.