EBRD boosts leading Turkish agricultural firm, Tiryaki Agro

By Olga Rosca
@olgarosca

EBRD boosts leading Turkish agricultural firm, Tiryaki Agro

  • US$ 48 million loan to Tiryaki Agro
  • Funds to finance day-to-day operations,  expansion into new markets and focus on organic products
  • Financing package includes 10 other lenders

The EBRD is providing US$ 48 million to Tiryaki Agro, boosting Turkey’s leading agricultural products exporter and supporting its expansion into new markets, day-to-day business and new investments.

The EBRD funding is part of two larger financing packages. The first, a US$ 28 million loan, is part of a comprehensive financing of US$ 230 million extended by a syndicate led by ABN Amro. Other lenders include the Dutch development bank FMO, Rabobank, HSBC, Société Générale, Amsterdam Trade Bank, Credit Suisse, British Arab Commercial Bank and Gazprombank.

The remaining US$ 20 million from the EBRD is part of a US$ 65 million facility arranged by FMO with the participation of Proparco, the investment arm of the French Development Agency.

The funds will provide long-term financing for the company’s day-to-day operations such as processing, storing and trading pulses, grains, feed, oilseeds, corn and nuts. The company also plans to expand into new markets such as North America and Europe, and strengthen its focus on organic products – a higher value-added business with higher profits.

Established in 1980 as a family business in Anatolia, Tiryaki has grown into the leading agricultural commodity supply chain manager in Turkey, operating in line with the highest international standards. The EBRD has been a shareholder since 2012 and has to date provided US$ 46.5 million in financing.

The Bank is a major investor in Turkey. Since 2009 it has invested €10 billion in various sectors of the Turkish economy, with almost all investments in the private sector.

In 2017 alone, the EBRD invested €1.6 billion in 51 projects in the country. Nearly a third of this financing was provided in Turkish lira.