The Bank has invested US$ 90 million in a US$ 500 million Eurobond issuance by Coca Cola Icecek A.S., a large producer, distributor and seller of sparkling and still beverages of The Coca-Cola Company across Turkey, Central Asia, Pakistan and the Middle East.
As a sustainability-linked Eurobond, key sustainability performance indicators are linked to water savings. The proceeds from the Bank's investment will be utilised for refinancing of existing financial debt, capex investments, and working capital requirements in Turkey.
ETI score: 71
Primary Quality: Inclusion. The project is expected to contribute to ongoing projects to improve equal opportunity practices and policies of the Company.
Secondary Quality: Well-Governed. The Company will also make improvements in corporate governance with the development of a plan for the roadmap to achieving the ambitious water efficiency target.
COCA-COLA ICECEK AS
Coca Cola Icecek is one of the largest independent bottlers in the Coca-Cola system, operating in Turkey, Central Asia, Pakistan and the Middle East, and listed on the Istanbul Stock Exchange. It is 50.3% owned by Anadolu Efes and 20.1% by The Coca-Cola Company.
EBRD Finance Summary
Total Project Cost
Financing Structure: The Bond will be listed on an international stock exchange, Euronext Dublin, and will increase the visibility of Turkey as an investment destination with international investors. The placement occurs at a time of continuous macro headwinds in Turkey and unstable FX rate which have deteriorated global investors' appetite towards instruments carrying risks associated with exposure to Turkey, which are further exacerbated by the COVID-19 crisis.
Standard-setting: EBRD's participation in the transaction will ensure that the Company further improves it corporate climate governance in line with international best standards. CCI will commit to an increase in the overall share of women at the Manager level and above by 2025 (at least 5%) from our current corporate baselines.
Environmental and Social Summary
Categorised B (ESP 2019). This is a capital markets transaction and as such environmental and social due diligence was undertaken on the basis of publicly available information. The Coca Cola Icecek (CCI) is a client of the Bank and is familiar with the environmental and social requirements of the Bank. The Company has in place a well-structured and comprehensive framework to address the environmental and social issues of relevance to the Bank's Performance Requirements. This framework covers environmental, community, employee and supply chain issues. For environment, the key areas of focus are climate change, water stewardship, sustainable packaging and waste management. For staff, key areas include human rights along the value chain, employee engagement, diversity and inclusion, freedom of association and collective bargaining and occupational health and safety. For supply chain, key areas include supporting sustainable agriculture and farmers, responsible sourcing, food quality and safety. For each of these areas, appropriate staffing is in place, at all levels, and separate policies have been developed and published to guide the actions of the Company. Key milestones have been tracked including certification to ISO 14001, OHSAS 18001, ISO 9001 and FSSC 22000 in all plants and ISO 50001 in all plants in Turkey, Pakistan and the Bishkek plant in Kyrgyzstan, in addition to the signature of best practice initiatives such the UN Global Compact Principles, the UN Women's Empowerment Principles, listing on the CDP Climate and Water Security Programs and received LEED Gold Certificate with CCI Dudullu HQ. CCI has started "Sustainable Beet Sugar Production" Project to effectively understand and implement the best practices for the sustainable production of beet sugar in Turkey in cooperation with leading FMCG (Fast-moving consumer goods) and beverage companies. It is important to mention that in the Turkey Operations, employees are free to organise and unionise and the ratio of employees working under a collective bargaining agreement is 95.82 percent for 2020. The Company has released a Sustainability Report for the last 10 years, with the latest 2020 integrated annual report being GRI compliant and in line with the International Integrated Reporting Council Framework, and covering 100% of CCI's total production volume as of 2020. Within these reports a wide range of targets are reported such as energy saved, water saved, recycled and reused, carbon emissions savings, packaging savings, hours of OHS training provided and the progress on implementation of the various initiatives to which the Company has committed itself. CCI have taken the necessary steps against the COVID-19 pandemic to protect the health and safety of their employees, customers, consumers and community. Given this framework, and the clear commitment to national compliance and good international practice, no additional actions will be required of the Company and an ESAP will not need to be agreed. The Company will be required to maintain compliance with the Bank's PRs and to provide the Bank with annual environmental and social reporting.
Technical Cooperation and Grant Financing
Company Contact Information
Cicek Usakligil Ozgunes
PSD last updated
20 Feb 2022
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