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.
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).
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.
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
Total Project Cost
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.
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
+90 324 221 41 41
+90 324 221 41 42
Emek Mahallesi Atatürk Bulv. No: 18/A Karacailyas/Mersin TURKIYE
PSD last updated
05 Jul 2022
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