- EBRD and Dutch development bank FMO join forces to support Anadolu Etap
- Boost for key fruit producer, farmers and rural areas in uncertain times of coronavirus pandemic
- Longer-term financing ensures greater flexibility and resources for company’s growth
Turkey’s agricultural sector is receiving a strong boost, as the European Bank for Reconstruction and Development (EBRD) is providing a €60 million loan to Anadolu Etap, the leading fruit producer in the country.
Half of the loan has been syndicated to the Dutch development bank FMO under the EBRD’s A/B structure.
Anadolu Etap is a joint venture between major Turkish companies Anadolu Group and Özgörkey Holding. It supplies fruits and produces fruit puree, concentrates and juices that are sold throughout Turkey and 60 other countries. The produce comes from 5 million trees located on eight farms spanning over 3,000 hectares. The company also runs three juice concentrate factories and a packaging facility.
The new financing will help Anadolu Etap ensure continuous growth despite the uncertainty caused by the coronavirus pandemic. A loan maturity of six years provides greater flexibility and resources to fund capital needs as demand increases both at home and abroad.
Arvid Tuerkner, EBRD Managing Director for Turkey, said: “There is no doubt about the severity of the impact of the coronavirus outbreak on agriculture in Turkey and elsewhere. By providing finance to Anadolu Etap, the major fruit producer and exporter in the country, we are also supporting local farmers and livelihoods in rural areas.”
In cooperation with the EBRD, the company will further expand its AgroAcademy programme for farmers, with a particular focus on women. Anadolu Etap will also join forces with educational institutions to improve the transfer of knowledge and skills to farmers and provide greater training and employment opportunities to Syrian refugees.
In addition, Anadolu Etap is committed to further raising the bar in corporate governance and business conduct standards. The company plans to certify its new orchards and farms to Global Good Agricultural Practices and adopt innovative agricultural technologies. It also intends to step up technical advisory and pre-financing services offered to farmers.
Bahadır Açık, CEO of Anadolu Etap, commented: “The loan from the EBRD and FMO is an indication of the lenders’ trust in Turkey, our company and in the Turkish agriculture sector. This financial support enables us to continue moving towards further growth and innovation as we work to meet the domestic and global demand for healthy produce.”
Wojtek Boniaszczuk, EBRD Head of Agribusiness, Turkey, said: “We are proud to continue our long-term partnership with the Anadolu Group and Anadolu Etap, supporting the company’s investments in state-of-the-art technologies, expansion of the AgroAcademy whilst also promoting higher corporate governance standards in Turkey’s agriculture sector.”
The EBRD is a major investor in Turkey. Since 2009 it has invested €12.4 billion through 311 projects in various sectors of the country’s economy, with almost all investment in the private sector. The EBRD’s €7 billion portfolio in Turkey is the largest among the 38 economies where the Bank invests.