Migros Ticaret - Bond



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

04 Jul 2018



PSD disclosed:

03 Aug 2018

Translated version of this PSD: Turkish

Project Description

The Bank has invested TRY 30 million (EUR 5.4 million) in Migros Ticaret A.S.'s ("Migros" or the "Company") first bond issuance totalling TRY 150 million (EUR 27 million). The bond is listed on Borsa Istanbul.

The issuance is the first part of a continuing series under a bond programme with a total aggregate size of TRY 550 million (EUR 99 million). The Bank has approval for an investment of up to TRY 110 million (EUR 19.8 million) in the entire programme. Migros has an approval from Capital Markets Board to increase the issuance up to TRY 1 billion (EUR 180 million) if they choose to.

The bond will be denominated in local currency comprising of sub-tranches indexed to Turkish Lira Interbank Offer Rate (TRLIBOR) and Constant Maturity Treasury Reference (CMTR) as its benchmark rates with maturities of three and two years respectively. As part of this issuance Migros has received a credit rating of AA-/Stable outlook from Fitch.

Project Objectives

The proceeds of the bond issuance will refinance certain existing short-term loans of the Company, thereby diversifying its sources of financing, especially in the context of a challenging economic
environment and limiting exposure to exchange rate fluctuations.

Transition Impact

The transition impact stems from the following two transition qualities:

The primary transition impact quality of the Project is Inclusive, through accreditation of the client's Retail Academy training programme and the resulting training and certification of young people (at least 2,000). As part of the Project, Migros will substantially strengthen its Retail Academy programme by obtaining accreditation through the Turkish Vocational Qualification Authority, training a significant number of young people, certifying students' learning outcomes in-line with national standards, and will work with the Bank on inclusion policy dialogue in Turkey.

The secondary TI quality is Green, stemming from the expansion and refurbishment of energy efficient stores. The project is in-line with the country strategy for Turkey as it will increase economic opportunities for young labour market entrants and it will also support energy efficiency improvements.

Client Information


Migros operates in 81 Turkish provinces, through a network of 1,976 food retail stores under Migros, M-Jet, 5M, and Macrocenter banners. The Company is also active in Kazakhstan and FYR Macedonia with 41 Ramstore outlets. Migros is 50% owned by Anadolu Grubu Holding A.S. ("AGHOL"), the holding company of Anadolu Group ("AG"). The remaining shareholding (23.2%) is held by a private equity consortium, and the remainder (26.8%) is free float on the Borsa Istanbul.

EBRD Finance Summary

TRY 110,000,000.00

Total Project Cost

TRY 1,000,000,000.00

Environmental and Social Summary

Categorised B (ESP 2014). The Bank's environmental and social due diligence indicated that the Company is a mature organisation with adequate corporate systems in place to manage their environmental, health and safety, social (EHSS) and labour issues, as well as proving that the Company is substantially compliant with Turkish regulatory EHS requirements. A high-level Sustainability Committee is responsible for improving the integration of sustainability across Migros and for monitoring as well as enhancing EHSS performance. A number of important resource and energy efficiency commitments under the Company's Consumer Goods Forum membership indicate a strong environmental commitment, aiming to position the Company as an environmental leader in Turkey.  While Migros does not formally benchmark their environmental performance against specific EU standards, the targets and measures already established largely exceed the EU and the EBRD minimum requirements. Migros has obtained multiple EHSS and quality certifications including ISO14001, OHSAS18001, ISO22000, ISO14064-3 (validation and verification of GHG assertions), Good Agricultural Practices (GAP), Organic Agricultural Operator, etc.

Migros' workforce is unionised and covered by a collective bargaining agreement that is renewable every two years. A robust human resources policy framework is in place, including a dedicated Human Rights and Equal Opportunity policy (covering areas such as freedom of association, forced and child labour, harassment, health and safety, etc.), and a Human Resource Policy (covering recruitment, performance, remuneration, engagement, etc). Migros proactively supports the participation of women in professional life and provides training to increase the number of female employees and administrators in the Company. The Company is committed to good labour standards and the systems in place are fully aligned with PR2. Migros has set-up a high-level OHS committee reporting directly to the CEO. All facilities with over 50 employees have dedicated OHS committees in place. Risk assessments are carried out at all facilities and continuous improvement is monitored through customised OHS management software. Migros are also implementing employee health and wellness programmes. Migros also have a Health and Nutrition policy in place and organise campaigns aiming at promoting customer health and "good living".

Migros reported that sustainability and human rights matters are included in all contracts with third parties and that compliance is supervised by their legal department. A strong supply chain management system is in place covering labour standards and environmental performance (mainly through the GAP standard) as well. Similarly, the Company has systems in place to extend EHSS and labour requirements to its contractors and agency workers. Contractors' OHS performances are evaluated through initial due diligence audits and, subsequently, regular control audits are carried out. No significant gaps were identified in this respect.

An Environmental and Social Action Plan (ESAP) has been developed and agreed with the Company to reflect the further environmental measures, to formally benchmark environmental performance against EU legislation, and to ensure regular monitoring to the EBRD. The Bank will monitor the Company's environmental and social performance and implementation of the ESAP by reviewing annual E&S reports.

Technical Cooperation


Company Contact Information

Cem Dogan (Finance Director)
+ 90 216 579 30 00
Migros Ticaret A.S., Ataturk Mahallesi, Turgut Ozal Bulvari, No:7, Atasehir, Istanbul, Turkey

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