EBRD backs Turkish confectionery producer in accelerating its green efforts

• €75 million EBRD loan to Ülker, a leading Turkish producer of confectionery
• Loan supports refinancing of previous financing for stronger green targets
• Project to allow company to expand coverage of emission calculations

The European Bank for Reconstruction and Development (EBRD) is providing a €75 million sustainability-linked loan to Ülker, a leading confectionery producer in Türkiye, to further strengthen the company’s green agenda.

The Bank’s loan will form part of a larger financing package amounting to €377 million – with participation from multiple banks – to be used for the refinancing of the existing sustainability-linked loan that the company utilised in March 2023.

Sustainability is a core component of Ülker’s business strategy, and the company remains committed to achieving net-zero emissions across its entire value chain by 2050. This includes embracing zero-waste corporate culture, implementing practices for transition to net-zero carbon usage and to cyclical models, and using green financing.

With EBRD support, the company will set more ambitious sustainability targets, while extending the coverage of their emission calculations to all production plants globally, including those in Egypt Kazakhstan and Saudi Arabia.

Mehmet Erdem Yasar, the EBRD’s Deputy Head of Türkiye, welcomed the transaction, saying: “We have long supported Ülker’s strong sustainability vision and are pleased to see the company’s continued and growing commitment. We are confident that this financing will further strengthen Ülker’s position as a leading example of sustainability in the sector.”

Ülker CEO Özgür Kölükfakı said: “At Ülker, we see creating environmental, economic and social value as an integral part of our growth and innovation journey. This partnership with the EBRD will not only help us set stronger sustainability targets but also enhance operational efficiency and reinforce our competitiveness. Across Türkiye and in all the markets where we operate, we remain committed to leading our sector through innovation and responsible production.”

Founded in 1944, Ülker is among Türkiye’s best-known confectionery brands, with a diverse product portfolio that includes biscuits, cakes and chocolates.

In 2024, the EBRD invested in the first sustainability-linked Eurobond issued by Ülker, supporting the firm in pursuit of green targets to reduce Scope 1 and 2 greenhouse gas emissions by 42 per cent by 2030, and Scope 3 emissions by 25 per cent by 2030.

The EBRD is one of Türkiye’s key investors, with more than €22.7 billion committed through 502 projects and trade finance limits since 2009, largely in the private sector.