Provision of EUR 7.5m senior loan for financing the company's working capital needs, as well as research and development (R&D) and production capital expenditures.
The key objective of the Project is to support the company's growth via the expansion of production and R&D capacities and working capital financing.
ETI score: 60
Competitive: the Project will support i) ongoing R&D programmes via further improvement of R&D efficiency and commercialisation of in-house developed products resulting from R&D; ii) higher uptake of water efficient drip irrigation in the supply chain for sunflower seeds production leading to higher water savings and agricultural productivity. Inclusive: the company will introduce i) a nationally-accredited vocational training programme for low-skilled young farmers; ii) a training programme on financial and climate literacy and other topics for experienced farmers in less developed cities of Turkey.
MAY AGRO TOHUMCULUK SANAYI VE TICARET AS
One of the leading private producers of seeds in Turkey and a pioneer in the field of seed production (including R&D).
EBRD Finance Summary
Total Project Cost
-Risk mitigation: EBRD's long-term relationship provides comfort to the client to take on more risk and/or finance, enabling outcomes such as innovation or expansion into new markets.
-Standard-setting: Client makes use of EBRD expertise on higher inclusion and gender standards.
Environmental and Social Summary
Categorised B (ESP 2019) and rated Low-Medium risk. Environmental and social risks related to the May Seed's operations in seed R&D, seed production and distribution are predominantly site specific and can be managed by appropriate mitigation measures. The Environmental and Social Due Diligence (ESDD) was undertaken by staff from the Bank's Environment and Sustainability Department in line with the COVID-19 approach through the review of E&S reports, E&S questionnaires, supporting documents and calls. The Project is consistent with the Green Energy Transition Approach.
The E&S review covered a wide range of topics including the potential E&S risks and liabilities of company's own production facility, occupational health & safety, supply chain management, labour practises, emissions and potential climate risks. The review demonstrated the Company's operations have limited E&S impacts, and those impacts are well managed through the implementation of international standard ISO-certified environmental, health, safety and quality management systems. The product quality is stringently controlled by May at all production stages. The production facilities are certified under ISO 9001 (Quality Management), ISO 14001 (Environment Management) and OHSAS 18001 (Occupational Health and Safety). May is not involved in the production of seeds containing genetically modified organism (GMO) and has testing and traceability systems in place to control the risk at all stages of production and distribution
To address identified E&S issues, an environmental and social action plan (ESAP) will be agreed with May Seed before signing. The ESAP is structured to ensure the Company's compliance with the Bank's Performance Requirements and on developing the Company's approach to increasing climate resilience in contracts and customer farming through research in to and adoption of sustainable cultivation management techniques such as low-till agriculture via field trials, training and guidance for agronomists, contract farmers, non-contract farmers and ultimately customers.
Technical Cooperation and Grant Financing
Inclusion TC to support the development of the two training programmes for farmers, TCRS 12804. Funding Source: Turkish Government Fund or SSF (expected).
Company Contact Information
Mr. Yusuf Yormazoglu
+90 224 351 45 00
+90 (224) 351 45 18
Samanli Mah. Yigitler Cad. No:28 16275 Bursa/TURKEY
PSD last updated
15 Jun 2022
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
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