Sodrugestvo Turkey

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 50699

Status Repaying

Location

Türkiye

Business Sector

Food and Agribusiness

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 50699

Status Repaying

Location

Türkiye

Business Sector

Food and Agribusiness

Notice Type

Private

Environmental Category

Approval Date

22 May 2019

Disclosure date

08 Jul 2019

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."

Translated version of this PSD: Turkish

Project Description

Provision of a USD 80 million loan to finance capex and working capital needs of Sodrugestvo Group's subsidiaries in Turkey. Working capital portion of the EBRD loan is expected to be syndicated (B Loan for the account of commercial bank(s) in the amount of up to USD 25 million).

Project Objectives

The loan will be utilized to finance part of the acquisition of a production facility in Izmir/Turkey and further capex programme including the modernisation of the acquired facility along with working capital financing for expansion of the operations in Turkey.

Transition Impact

The transition impact of this project, jointly with the project for financing of commodities sourcing in Serbia and Ukraine, stems from supporting the expansion of Sodrugestvo Group's footprint and its integration into other markets in the EBRD region by supporting an acquisition in Turkey and expanding its suppliers' base in Ukraine and Serbia. The project will also support improved competitiveness stemming from improved business standards, efficiency gains and greater profitability.

Client Information

SODRUGESTVO TURKEY TARIM TASIMACILIK ITHALAT IHRACAT TICARET AS

Sodrugestvo Group S.A., headquartered in Luxembourg, ranks amongst the top-20 processors of soybeans in the world with activities in Turkey and the wider region including CIS, MENA, Latin America, and Europe.

EBRD Finance Summary

USD 55,000,000.00

Up to USD 55,000,000

Total Project Cost

USD 87,500,000.00

Up to USD 87,500,000

Environmental and Social Summary

Categorised B (ESP 2014). The purchase and processing of soybeans is associated with a number of environmental and social issues which are well understood and readily addressed through appropriate mitigation measures. Environmental and social (E&S) due diligence of this project included completion of a detailed E&S questionnaire by the Group companies and a site visit to production facilities by a member of the Bank's Environment and Sustainability Department. The facilities are located within an industrial zone of the city and are surrounded by other industrial entities.

The Group has adequate capacity in place in terms of staffing and has demonstrated a strong commitment to addressing the key environmental and social impacts associated with its production. The Group has recently established its Quality Department in Turkey and has adopted a number of objectives to enhance its quality, food safety, environmental and health and safety management. This will be done by sequentially achieving certifications to ISO9001 on quality management, ISO22000 and GMP PLUS certifications on food safety, the Round Table on Responsible Soy, ISO 14001 on environmental management and OHSAS 18001 on health and safety.

The Group has undertaken a detailed review of its manufacturing facilities in Turkey and has developed a comprehensive plan to address a number of areas within the production process thus bringing production, environmental and health and safety benefits. The facilities are generally quite old and there are many areas where the Group plans to upgrade and replace the equipment and facilities. These include improvement of environmental control procedures, implementation of improved labour protection through enhanced training, facilities and documentation, installation of new, and repair of older, equipment and upgrade of buildings.

This improvement plan and other commitments to put in place management systems have been formalised with the Group in a time-bound and costed Environmental and Social Action Plan (the ESAP) which has been agreed with the Group. The Group will be required to provide annual reporting on both the ESAP and the other E&S matters to the Bank.

Technical Cooperation

None.

Company Contact Information

Mr. Artem Pozdnyakov, Treasury & Corporate Finance Group Head
a.pozdnyakov@sodru.com
www.sodrugestvo.com
Sodrugestvo Group S.A. 29 Avenue de la Porte-Neuve L-2227 Luxembourg

Transition impact

ETI Score:61

PSD last updated

28 Nov 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

Our story

How we invest in changing lives

What we offer for businesses

Search