The provision of USD 20 million (EUR 20 million) long-term senior loan (the "Loan") to a soft drinks producer incorporated in Turkiye, Uludag Icecek Turk A.S.
The Bank's financing will be used to finance (i) new warehouse for its Yenice plant, (ii) a wastewater recovery facility for its Caybasi factory, and (iii) solar panel investments for both factories.
ETI score: 68
Primary Quality: Green
The proceeds of the Bank's investment will be used to finance a wastewater recovery facility for its Caybasi factory and solar panel investments for both factories, resulting benefits on both climate dimensions: a climate mitigation impact flows from the reduction of the Uludag's carbon emissions, and a climate adaptation impact is achieved through reducing the Uludag's water consumption.
Secondary Quality: Inclusive
Under the project scope, the Company will commit to revise its gender equality policies and practices through the introduction of an Equal Opportunities Action Plan (EOAP) and commit to a significant increase of the female workforce, including in managerial positions.
TO BE DEFINED
Uludag Icecek Turk A.S. (the "Borrower", the "Company", or "Uludag"), a limited liability company incorporated in the Republic of Turkiye.
EBRD Finance Summary
Total Project Cost
The EBRD offers a long term financing tailor-made to the Company's capex plan. The Bank will support client to achieve (i) higher energy and resource efficiency standards by committing the systematic monitoring, reporting and verification of climate mitigation and climate adaption benefits, leveraging the Bank's know-how in the area of MRV, and (ii) higher gender standards with introduction of Equal Opportunities Action Plan (EOAP) by externally-verified institution in Turkiye, supporting women with gender-responsive recruitment, progression, and training.
Environmental and Social Summary
Categorised B (ESP 2019). Uludag is a current client and performance to date has been satisfactory in the context of existing projects. Environmental and social due diligence (ESDD) on previous projects was undertaken by ESD and identified a number of areas where improvement was required, particularly in terms of the adoption of more formalised E&S management systems. In response (and as part of the agreed the ESAP), the Company created a fully integrated quality management system, incorporating ISO 14001 and OHSAS 18001. While neither of the production facilities are a source of nuisance to local communities and no complaints on Company activities have been received to date, the Company agreed to further develop its stakeholder engagement processes and a revised stakeholder engagement plan was developed. The new project with the Company includes elements which are either largely benign or indeed positive, from an E&S perspective. The new warehouse will be constructed on an existing production site and therefore no land take is required. The waste water plant is aimed at recycling the large percentage (up to 85%) of waste water produced by the Caybasi production facility, including treatment of re-cycled waters back to drinking water standards. Finally, the Company has provided information on the solar panels and other components to be installed as part of the solar power component. The total capacity to be financed by the Bank is less than 5MW and information provided confirms that the solar panels will be procured from a company listed on the Green Technology Selector. Land based panels will be installed on sites already owned and operated by the Company. Other components besides the solar panels, such as invertors, will be provided by a supplier which does not have production facilities within the regions associated with forced labour and any components coming from China are not coming from those regions. Given the above, and given the previous execution of the agreed ESAP, no additional actions are required of the Company. The Bank will continue to monitor the activities of Uludag via annual E&S reporting provided by the Company.
Technical Cooperation and Grant Financing
Company Contact Information
Nizamettin Gurhan Tutlu
+90 224 738 16 00
Doganevler Mah. 3. Pazar Sk. No:115 Osmangazi/Bursa, Turkiye
PSD last updated
07 Dec 2022
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