DFF - Bashan

Location:

Turkey

Project number:

53760

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

28 Jun 2022

Status:

Disbursing

PSD disclosed:

05 Jul 2022

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The provision of a US$ 23.9 million (€ 22.6 million) senior secured loan (the Loan) to Turkey based processor of pulses Bashan Tarimsal Urunler Pazarlama Sanayi ve Dis Ticaret A.S.

Project Objectives

The Bank's financing will be used to (i) consolidate and extend the maturity of existing loans from local banks (US$ 8.9 million) and (ii) finance working capital needs (US$ 15 million).

Transition Impact

ETI score: 59

Primary Quality: Resilient

The project will allow Bashan to (i) secure needed long-term financing to compensate for the constantly growing raw materials prices, the rising food pricing and provide resilience against the volatile Turkish market; (ii) re-route the supplier base to replace suppliers from Ukraine and Russia on the back of the war on Ukraine, introducing at least ten new international suppliers of lentil, beans and chick-pea.

Secondary Quality: Green

Bashan will increase organic procurement by 50,000 tonnes by year-end 2025 and will commit to sourcing at least 75 per cent of organic commodities from EBRD countries of operations. This is expected to increase production of organic certified pulses in EBRD CoOs by a minimum of 14,250 tonnes (equivalent to 4,000 ha.) per year by 2025. The GET share for the project is 34 per cent.

Client Information

BASHAN TARIMSAL URUNLERI AS

Bashan Tarimsal Urunleri Pazarlama Sanayi ve Dis Ticaret A.S. (the "Company", the "Borrower", "Bashan"), a private company organised in Turkey, is one of the leading processors of pulses in Turkey.

EBRD Finance Summary

USD 25,000,000.00

Total Project Cost

USD 25,000,000.00

Additionality

Identified triggers

A significant share (at least 30 per cent) of the Project is for refinancing: The rationale for the refinancing is the current deficiency of the financing structure that does not allow for full capacity utilisation of the Borrower.

A significant share of the Project is to finance working capital: The Borrower requires a substantial and long-term working capital financing in order to increase capacity utilisation and better serve its clients in the current rising prices environment.

Additionality sources

Financing Structure. The EBRD offers a tenor, which is longer than available to the client in the market on reasonable terms and conditions.

Standard-setting: Client seeks/makes use of the EBRD expertise on higher financial standards, including through financial covenants.

Environmental and Social Summary

Categorised B (ESP 2019). Environmental and social due diligence (ESDD) was carried out through review of E&S questionnaires and supporting documents. The E&S review covered a wide range of topics and no significant risks were revealed. The review demonstrated the Company's operations have limited E&S impacts which are adequately managed through implementation of ISO-certified management systems, including certification to ISO 9001, 14001 and 45001. The Company also has systems in place to ensure adequate management of both health and safety of workers, contractors and local communities and human resources. Due diligence also revealed that the Borrower has mitigation/resilience measures in place to cope with the predicted physical climate risks. Based on a mix of adaptation measures already taken, the absence of a direct transmission channels and low likelihoods of physical hazards materialising the Borrower is at a low risk of being impacted in a material way both physically and financially during the tenor of the transaction. The Company is required to provide annual reporting on its E&S performance and implementation of the ESAP to track the progress of the GET outcomes.

Company Contact Information

Ulas Yurdakul
ulas.yurdakul@bashan.com.tr
+90 324 221 41 41
+90 324 221 41 42
https://www.bashan.com.tr
Emek Mahallesi Atatürk Bulv. No: 18/A Karacailyas/Mersin TURKIYE

PSD last updated

05 Jul 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

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).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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