US$ 50 million equity investment to finance expansion
One of the largest global restaurant operators, Turkey-based TFI TAB Gıda Yatırımları A.Ş (TFI), has issued US$150 million of preferred stock to finance its future growth plans.
The European Bank for Reconstruction and Development (EBRD) is buying US$ 50 million of the issuance. Goldman Sachs and an investment vehicle advised by Credit Suisse Special Investments Group are investing US$ 80 million and US$ 20 million respectively.
TFI runs more than 1,500 restaurants in Turkey and China and is the world’s largest Burger King master franchisee with exclusive operating rights in Turkey and China. In Turkey, the company also owns and operates bread, potato and meat processing plants which are part of its supply chain.
The new financing will help TFI roll out new restaurants as well as expand their supply chain and implement resource-efficiency measures.
Korhan Kurdoglu, TFI President and vice-chairman of the Board of Directors, said: “We are very proud to have received this important round of financing from three global investors. We believe this investment will facilitate our next stage of development. Our mission has always been to provide affordable dining and leisure experiences to our millions of customers in two countries whilst observing the highest standards in operational quality. This investment will help us reinforce this mission and expand our consumer base globally. The backing of these global institutions will also help us prepare for the public markets in the next few years.”
Claudia Pendred, EBRD Director, Property and Tourism, said: “This equity investment will help TFI grow both at home and abroad, creating job opportunities for young people and offering them much-needed training. As a shareholder we will be pleased to be part of the company’s growth story and help it develop into an international company.”
The Bank will support TFI’s corporate governance improvements and enhance its sustainability standards.
TFI also shares the EBRD’s strong commitment to raising vocational skills levels in Turkey, especially creating opportunities for young people and preparing them for the job market.
Working with Turkish educational authorities, TFI and the EBRD will help develop occupational standards for the fast-food industry across the country. This will benefit tens of thousands of young people employed in the restaurant sector which, along with hospitality and service sectors, provides many young people with their first jobs and often helps the unemployed reintegrate into the work environment.
Investing in equity of successful Turkish companies to help them grow and expand abroad is part of the EBRD’s strategy in Turkey.
The Bank started investing in Turkey in 2009 and currently operates from offices in Istanbul, Ankara and Gaziantep. Some 98 per cent of its investments in the country are in the private sector.
To date, the EBRD has invested over €7 billion in Turkey through more than 180 projects in infrastructure, energy, agribusiness, industry and finance. It has also mobilised about €17 billion for these ventures from other sources of financing.
The EBRD’s strategic priorities for the period 2016-18 for its countries of operations are re-energising growth, strengthening regional integration and addressing global challenges.
Credit Suisse International acted as the Sole Placement Agent on this private placement.