€25 million EBRD loan to help increase competitiveness
The European Bank for Reconstruction and Development (EBRD) is promoting greater competitiveness in the Turkish private sector with a €25 million loan to local edible oil and canned food producer Yonca Gıda Sanayi A.Ş.
Yonca Gıda’s large product range includes sunflower, corn and canola oils and canned products such as tomato paste, pickles and sauces, with almost half of production destined for export to over 40 countries.
The EBRD investment will finance the company’s 2015 investment programme, working capital needs and re-financing of existing loans.
In particular, Yonca Gıda aims to increase its product portfolio to meet the needs of clients among restaurants, cafes, large fast-food chains and hotels.
The company will also use EBRD finance to further improve its corporate governance standards, environmental practices and resource efficiency.
In addition, it will work to deepen its supply-chain relationship with local farmers, by providing them with advice on how to expand production.
Established in 1981, by the late Hasan Türek, Yonca Gıda has grown to become a key player in its market in Turkey and currently runs three production facilities in the west of the country, in Manisa, Saruhanlı and Karaağaçlı.
The company is currently managed by the second generation of the founding family and is led by Sait Cemal Türek, who is committed to boosting the firm’s competitiveness both in Turkey and on international markets through strategic investment in greater efficiency and higher standards.
Jean-Patrick Marquet, EBRD Director for Turkey, said: “We are pleased to start this relationship with Yonca Gıda, a successful family-owned company with an established brand in Turkey. Our finance will help the firm to become even more efficient and competitive at home and abroad.”
Sait Cemal Türek, Yonca Gıda’s CEO, said: “Building on the fifteen years of sustained double digit growth and now with the EBRD’s dependable support, Yonca Gıda aims to grow its annual revenues from US$ 250 million today, to US$ 500 million within the next five years.”
Investing in the competitiveness of Turkish private sector companies, particularly outside the large metropolitan areas of Istanbul or Ankara, is among EBRD priorities in the country.
The EBRD started investing in Turkey in 2009. It currently operates from offices in Istanbul, Ankara and Gaziantep. In 2014 Turkey became the leading recipient country of the EBRD, with new investments worth €1.4 billion.
In just six years the Bank has invested over €5 billion in Turkey through more than 140 projects in infrastructure, energy, agribusiness, industry and finance. It has also mobilised over €12 billion for these ventures from other sources of financing.