The transaction envisages providing up to EUR 25 million senior unsecured loan in favour of Yayla Agro Gida Sanayi ve Nakliyat A.S., a commodity trader specialised in processing of pulse products in Turkey.
The Loan will enable the Company to finance its working capital needs due to the increased procurement requirement from the suppliers in order to satisfy increased demand for food products from consumers in Turkey related to COVID-19 crisis.
ETI score: 60
This Project will help the Company to continue deliver and preserve the Transition Impact of the existing project, with some additional commitments that fall under the Competitive quality.
Well-Governed (Primary): The Project will support corporate governance improvements of a family-owned business in Turkey through the implementation of a detailed Corporate Governance Action Plan.
Competitive (Secondary): The Project will lead to an improvement in the Company's operational performance as a result of expansion of exports and its ready-to-eat production sales and introduction of a new product segment. The Project will also enable the Company to remain an effective market player by adhering to best business standards.
YAYLA AGRO GIDA SANAYI VE NAKLIYAT AS
Founded in 1983, Yayla Agro is a commodity trader specialized in the processing of pulse products in Turkey with export capacity to various markets around the globe. The Company is based in Ankara and it is operating from two facilities located in Mersin (Southern Turkey) and Kazan, Ankara with an overall processing and packaging capacity of 1 million tons per year.
Yayla Agro is an existing client of the Bank. The original project signed in 2017 involved i) refinancing of the Company's existing loans, ii) financing of working capital needs iii) and financing of ready-to-eat investment facility located in Mersin.
EBRD Finance Summary
The proposed transaction envisages providing up to EUR 25 million senior unsecured working capital facility.
Total Project Cost
(i) Financing structure: The EBRD offers a tenor above the market average, which is necessary to structure the Project;
(ii) Financing structure: The EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions (including longer grace period, restricted foreign currency financing).
Environmental and Social Summary
Categorised B (2019 ESP and Low to Medium Risk). Provision of working capital to a grain trader is associated with limited site-specific environmental and social (E&S) impacts. The Client is an existing EBRD Client with a good track record. Its E&S compliance status and progress in implementation of the previously agreed Environmental and Social Action Plan was confirmed by in-house environmental and social due diligence (ESDD).
ESDD was undertaken in-house by means of review of the Annual Environmental and Social Reporting and additional documents followed by the Q&A session. It has been established that the Company is compliant with the national legislation, has implemented a functional, certified EHS management system and possesses the institutional capacity to deliver the Project in line with EBRD requirements. Some improvements are required in terms of implementing the previously agreed corrective actions, including provision of a grievance redress mechanism and improved stakeholder engagement. ESD will work with the team and the Client to ensure these are fully implemented. The Bank will continue to monitor Project implementation via the review of the Annual Environmental and Social Reports.
Technical Cooperation and Grant Financing
Company Contact Information
Istanbul yolu, 30 km Saray Mah. Fatih Sultan Bulvari, No 327, Kazan, Ankara, Turkey
PSD last updated
03 Jun 2020
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