Savola Turkey Seasonal WC

Location:

Turkey

Project number:

51330

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

C

Target board date:

04 Sep 2019

Status:

Board Approved

PSD disclosed:

13 Aug 2019

Project Description

Provision of an up to EUR 25 million revolving working capital loan (the "Loan") to Savola Gida Sanayi Ve Ticaret AS ("Savola Turkey", the "Company"), a corporation incorporated in the Republic of Turkey, and an existing client of the Bank.
 
The Loan will be used by Savola Turkey to procure inputs, namely crude vegetable oil, for subsequent processing, bottling, and marketing.

Project Objectives

The EBRD's financing will be used for the procurement of crude edible oil and other inputs for further processing and distribution. The Bank aims to support the Company as it expands operations with increased exports to new international markets and new products launched.

Transition Impact

The expected transition impact of the project stems from the Integrated and Inclusive qualities. Under the Integrated quality, the project will support the expansion of the Company's exports in new markets, notably in Central Asia and the Caucasus. Under the Inclusive quality, the Company will benefit from Technical Cooperation support to undertake a corporate level equal opportunities assessment. The action plan will be implemented by the Company and this is expected to result in a higher share of female employees.

Client Information

Savola Turkey is an edible oil and specialty fats producer, whose Yudum brand is well recognized among local consumers. The Company is fully owned by Savola Group Company, one of Saudi Arabia's leading agribusiness companies with a strong presence in the MENA region, Iran and Turkey, and engaged in food production and food retail. 

EBRD Finance Summary

EUR 25,000,000.00
3 year revolving working capital loan.

Total Project Cost

EUR 63,000,000.00
Equivalent to TRY 400m, the Client's WC needs for the 2019-20 season.

Environmental and Social Summary

Categorised B (ESP 2014). Savola Turkey is an existing client of the Bank and performance to date in terms of compliance with the existing Environmental and Social Action Plan (ESAP) and the Bank’s Performance Requirements has been satisfactory.  The provision of working capital for purchase of unrefined bulk vegetable oil is not, in itself, associated with any significant environmental or social impacts.  The current ESAP includes requirements for further development of health and safety, supply chain, and grievance management and development of improved stakeholder engagement.  Annual environmental and social reporting provided to date does not indicate any issues  and demonstrates that the Company is implementing the ESAP as agreed and has adequate capacity and procedures in place to manage the key issues. Given the low E&S risk associated with this project and the adequate performance of the Company to date, no further E&S actions will be required for this project.  The Company is required to continue compliance with the Bank’s PRs and to provide the Bank with annual reporting on E&S issues. 

Technical Cooperation

N/A

Company Contact Information

Azer Bedirhanli
+90 216 578 68 00
+90 216 573 66 34
Barbaros Mah. Kardelen Sok. No: 2 /123 Kat:36 Palladium Tower Atasehir / Istanbul

 

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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.