DFF - Sesa Ambalaj Loan

Location:

Turkey

Project number:

52676

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

24 Aug 2021

Status:

Approved

PSD disclosed:

27 Aug 2021

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."

Project Description

Provision of a senior unsecured loan of up to EUR 11.4 million to Sesa, to be disbursed in EUR and/or TRY in two tranches each with a maturity of 5 years and 1 year of grace period (the "Loan"). The Loan includes a committed tranche of EUR 9m (the "Committed Tranche") to finance the Company's 2022 capex plans and an uncommitted tranche of EUR 2.4m (the "Uncommitted Tranche") to finance the Company's 2023 capex plans.

Project Objectives

The key objective of the transaction is to support the Company's gradual transition into sustainable packaging and improve its resource efficiency measures. These will be achieved through installment of a solvent recovery unit and an extruder equipment. The Project is consistent with the Bank's Agribusiness Sector Strategy (BDS18-166(F)) which "supports sustainable agribusiness and [...] to support private sector development". The Project is also in line with the Bank's Strategy for Turkey (BDS/TK/19-01(F)) highlighting that the Bank will contribute to increased energy/resource efficiency and increased gender equality in access to economic opportunities.

Transition Impact

ETI score: 65

Transition impact will stem from (1) Green quality as the Project involves investments in (i) a solvent recovery unit (SRU) to reduce VOC emissions and re-use of the recovered solvents, and (ii) an extruder machine allowing for production of fully recyclable flexible packaging and (2) Inclusive quality as the Project will introduce externally-verified equal opportunity policies increasing the Company's female workforce by 10%, with a focus on strengthening women's representation on executive levels.

Client Information

SESA AMBALAJ VE PLASTIK SANAYI TICARET AS

Sesa Ambalaj ve Plastik Sanayi Ticaret A.S. ("Sesa", the "Company" or the "Borrower"), is a private company organised in Turkey and a medium-sized flexible packaging manufacturer. The Company produces a variety of flexible packaging products mainly for food & beverage companies. The Company is ultimately 70% owned by Dogan Sirketler Grubu Holding A.S. ("Dogan Holding"), and 30% by Savul Family.

EBRD Finance Summary

EUR 11,400,000.00

Total Project Cost

EUR 11,400,000.00

Additionality

Key additionality sources are (1) financing structure as EBRD offers financing that is not available in the market from other commercial sources on reasonable terms and conditions, (2) standard-setting as the Project will enable the Company to prepare a sustainable packaging programme to reduce resource consumption, promote the use of alternative materials (e.g bio-plastics) and increase recyclability and recycled material use and (3) standard-setting as the Company seeks use of EBRD expertise for the adoption of higher gender standards/equal opportunities action plans.

Environmental and Social Summary

Categorised B (ESP 2019). The production of plastic packaging is associated with a number of environmental and social (E&S) issues in both the production process itself and in responsibility for the management of plastic wastes. Key issues to consider include air emissions particularly release of solvents, energy use, management of solid wastes and wastewater, and protection of health and safety. Also important are requirements for producer responsibility for recovery, reuse and recycling of plastic materials as regulated through the EU's packaging and packaging waste requirements. The Company has completed the required E&S questionnaire demonstrating that the Company is in compliance with national requirements for environment, health, safety and labour management. ESD has reviewed of this document and based on the E&S questionnaire; the Company is certified to a number of best practice management systems including ISO/IEC 27001 & ISO 9001 and has already obtained an environmental permit on air emissions and complies with the limit values determined by the regulation. The air quality emissions (dust, standard combustion gas emissions and VOCs) are measured periodically and reported by the accredited company. The company has also an Industrial Waste Management Plan covering hazardous, plastic and packaging wastes. Wastes from the facility are sent to recycling facilities. Hazardous wastes generated at the facility are stored in a temporary storage area separately and according to their types. The company also has an Occupational Health and Safety (OHS) Policy and Training Plan covering both OHS and environmental implementations. Some improvements have been identified as follows: development and implementation of an Environmental and Social Management Plan which will include the measures identified in national permitting documentation and the Environmental and Social Assessment to be conducted by the Company; development of a Stakeholder Engagement Plan and a formal grievance mechanism. An ESAP has been prepared accordingly and ESD will monitor compliance with the actions through annual E&S reporting.

Technical Cooperation and Grant Financing

Resource efficiency TC to improve Sesa's resource consumption and provide recommendations to the Company for gradually switching to sustainable packaging production. TCRS 12486. Funding Source: Austria DRIVE Funds. Client Contribution: 10%.

Company Contact Information

Fatih Yuzbas, Finance & Administration Manager
fatih@sesaplastik.com.tr
+90 (232) 877 1061
https://www.sesaplastik.com.tr/en/
KOSB Mahallesi, Gazi Bulvari, No:150, Kemalpasa, Izmir, Turkey

Implementation summary


PSD last updated

27 Aug 2021

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.

For business opportunities with EBRD (not related to procurement) contact:

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

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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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