DFF - Yayla Agro Working Capital Facility

Location:

Turkey

Project number:

52069

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

28 Apr 2020

Status:

Disbursing

PSD disclosed:

03 Jun 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

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.

Project Objectives

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. 

Transition Impact

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.

Client Information

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

EUR 25,000,000.00

The proposed transaction envisages providing up to EUR 25 million senior unsecured working capital facility.

Total Project Cost

EUR 25,000,000.00

Additionality

(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

None

Company Contact Information

Faruk Ildir
farukildir@yaylabakliyat.com.tr
00903128154950
00903128154790
www.yaylabakliyat.com.tr
Istanbul yolu, 30 km Saray Mah. Fatih Sultan Bulvari, No 327, Kazan, Ankara, Turkey

PSD last updated

03 Jun 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

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Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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