Provision of a senior unsecured loan of up to EUR 11.4 million to Sesa, to be disbursed in EUR and/or TRY in two tranches each with a maturity of 5 years and 1 year of grace period (the "Loan"). The Loan includes a committed tranche of EUR 9m (the "Committed Tranche") to finance the Company's 2022 capex plans and an uncommitted tranche of EUR 2.4m (the "Uncommitted Tranche") to finance the Company's 2023 capex plans.
The key objective of the transaction is to support the Company's gradual transition into sustainable packaging and improve its resource efficiency measures. These will be achieved through installment of a solvent recovery unit and an extruder equipment. The Project is consistent with the Bank's Agribusiness Sector Strategy (BDS18-166(F)) which "supports sustainable agribusiness and [...] to support private sector development". The Project is also in line with the Bank's Strategy for Turkey (BDS/TK/19-01(F)) highlighting that the Bank will contribute to increased energy/resource efficiency and increased gender equality in access to economic opportunities.
ETI score: 65
Transition impact will stem from (1) Green quality as the Project involves investments in (i) a solvent recovery unit (SRU) to reduce VOC emissions and re-use of the recovered solvents, and (ii) an extruder machine allowing for production of fully recyclable flexible packaging and (2) Inclusive quality as the Project will introduce externally-verified equal opportunity policies increasing the Company's female workforce by 10%, with a focus on strengthening women's representation on executive levels.
SESA AMBALAJ VE PLASTIK SANAYI TICARET AS
Sesa Ambalaj ve Plastik Sanayi Ticaret A.S. ("Sesa", the "Company" or the "Borrower"), is a private company organised in Turkey and a medium-sized flexible packaging manufacturer. The Company produces a variety of flexible packaging products mainly for food & beverage companies. The Company is ultimately 70% owned by Dogan Sirketler Grubu Holding A.S. ("Dogan Holding"), and 30% by Savul Family.
EBRD Finance Summary
Total Project Cost
Key additionality sources are (1) financing structure as EBRD offers financing that is not available in the market from other commercial sources on reasonable terms and conditions, (2) standard-setting as the Project will enable the Company to prepare a sustainable packaging programme to reduce resource consumption, promote the use of alternative materials (e.g bio-plastics) and increase recyclability and recycled material use and (3) standard-setting as the Company seeks use of EBRD expertise for the adoption of higher gender standards/equal opportunities action plans.
Environmental and Social Summary
Categorised B (ESP 2019). The production of plastic packaging is associated with a number of environmental and social (E&S) issues in both the production process itself and in responsibility for the management of plastic wastes. Key issues to consider include air emissions particularly release of solvents, energy use, management of solid wastes and wastewater, and protection of health and safety. Also important are requirements for producer responsibility for recovery, reuse and recycling of plastic materials as regulated through the EU's packaging and packaging waste requirements. The Company has completed the required E&S questionnaire demonstrating that the Company is in compliance with national requirements for environment, health, safety and labour management. ESD has reviewed of this document and based on the E&S questionnaire; the Company is certified to a number of best practice management systems including ISO/IEC 27001 & ISO 9001 and has already obtained an environmental permit on air emissions and complies with the limit values determined by the regulation. The air quality emissions (dust, standard combustion gas emissions and VOCs) are measured periodically and reported by the accredited company. The company has also an Industrial Waste Management Plan covering hazardous, plastic and packaging wastes. Wastes from the facility are sent to recycling facilities. Hazardous wastes generated at the facility are stored in a temporary storage area separately and according to their types. The company also has an Occupational Health and Safety (OHS) Policy and Training Plan covering both OHS and environmental implementations. Some improvements have been identified as follows: development and implementation of an Environmental and Social Management Plan which will include the measures identified in national permitting documentation and the Environmental and Social Assessment to be conducted by the Company; development of a Stakeholder Engagement Plan and a formal grievance mechanism. An ESAP has been prepared accordingly and ESD will monitor compliance with the actions through annual E&S reporting.
Technical Cooperation and Grant Financing
Resource efficiency TC to improve Sesa's resource consumption and provide recommendations to the Company for gradually switching to sustainable packaging production. TCRS 12486. Funding Source: Austria DRIVE Funds. Client Contribution: 10%.
Company Contact Information
Fatih Yuzbas, Finance & Administration Manager
+90 (232) 877 1061
KOSB Mahallesi, Gazi Bulvari, No:150, Kemalpasa, Izmir, Turkey
PSD last updated
27 Aug 2021
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Independent Project Accountability Mechanism (IPAM)
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