Anadolu Efes Eurobond

Location:

Turkey

Project number:

52973

Business sector:

Agribusiness

Notice type:

Private

Approval date:

09 Jun 2021

Status:

Signed

PSD disclosed:

15 Nov 2021

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 Bank has invested US$ 40 million in a US$ 500 million Eurobond issuance by Anadolu Efes Biracilik ve Malt Sanayii A.i. a large regional producer of beer and soft drinks. The proceeds will be applied towards refinancing of the existing Eurobond maturing in 2022 and for general corporate purposes.

Project Objectives

The Project will enhance access to skills and economic opportunities for farmers through the introduction of a Training programme on more sustainable, productivity raising agricultural practices in barley and hops production. The Company will also offer support and knowledge sharing to contracted farmers on the use of digital technologies in agriculture and it will introduce novel products and processes that promote a circular economy model for the brewery industry.

Transition Impact

ETI score: 65

Primary quality: Inclusion. The Project will open up access to skills and economic opportunities for young farmers in rural Turkey through the development of a new training program on sustainable agricultural practices in barley and hops production.

Secondary quality: Competitive. Anadolu Efes will offer support and knowledge sharing to contracted farmers in relation to digital technologies in agriculture. The Project will also support the introduction of novel products and processes in relation to one of the major side products of its operations, brewers spent grain, promoting a circular economy model in the brewery industry.

Client Information

ANADOLU EFES BIRACILIK VE MALT SANAYII AS

Anadolu Efes is a large regional beer and soft drink producer active in the EBRD's countries of operations. The company is the flagship entity of the Turkish conglomerate Anadolu Grubu Holding A.i. which holds 43 per cent of the share capital (the remaining 24 per cent of company shores owned by ABInBev, while 33 per cent is listed on the Borsa Istanbul Stock Exchange).

EBRD Finance Summary

USD 40,000,000.00

Total Project Cost

USD 500,000,000.00

Additionality

Financing Structure: The bond is listed on an international stock exchange and will increase visibility of Turkey as an investment destination with international investors. The EBRD participation in the bond issuance is deemed a valuable signal to international investors for the successful placement.

Standard-setting - helping projects and clients achieve higher standards: Through the Project, the Bank supports the Company in advancing its agenda to promote gender equality across operations by advancing their policies in practises. The aim is to achieve a 10 percentage points increase of women across their occupations within the next 5 years and to start measuring the number of women suppliers in their current value chain. The Project will also help the Company enhance access to skills and economic opportunities for young people in rural Turkey.

Environmental and Social Summary

Categorised B (ESP 2019). This is a capital markets transaction and as such environmental and social due diligence was undertaken on the basis of publicly available information.  Anadolu Efes is a former client of the Bank and is familiar with the environmental and social requirements of the Bank.  The Company has in place a well-structured and comprehensive framework to address the environmental and social issues of relevance to the Bank's Performance Requirements.  This framework covers environmental, community, staff and supply chain issues.  For environment, the key areas of focus are climate change, water risks and management, waste and packaging.  For staff, key areas include employee engagement, gender equality, and occupational health and safety.  For supply chain, key areas include supporting sustainable agriculture and farmers, responsible sourcing, quality and food safety.  For each of these areas, appropriate staffing is in place, at all levels, and separate policies have been developed and published to guide the actions of the Company.  Key milestones have been tracked including certification to ISO 14001 and ISO 50001 at all plants and signature of best practice initiatives such the UN Global Compact Principles, the UN Women's Empowerment Principles and listing on the CDP Climate Program.  It is important to mention that in the Turkish context, employees are free to organise and unionise and the ratio of employees working under a collective bargaining agreement was 47 percent.  The Company has released a Sustainability Report for the last ten years, with the latest 2019 report being GRI compliant and covering production operations in Turkey, Russia, Ukraine, Kazakhstan, Georgia, and Moldova.  Within these reports a wide range of targets are reported such as energy saved, carbon emissions decreased, packaging reduced, hours of OHS training provided and the progress on implementation of the various initiatives to which the Company has committed itself. Given this framework, and the clear commitment to national compliance and good international practice, no additional actions will be required of the Company and no ESAP will need to be agreed.  The Company will be required to maintain compliance with the Bank's PRs and to provide the Bank with annual environmental and social reporting.

Technical Cooperation and Grant Financing

The Project is associated with two Technical Cooperation assignments:

The first one - SSF funded and with 50 per cent cost sharing by Anadolu Efes - will support the Company in setting up the training programme outside of the Company's current value chain and in developing an Equal Opportunities Action Plan (EOAP) aimed at assessing and implementing changes to its current policies and practises. The TC will enable the Company to increase its share of female workers. The second is an on-going assignment under the Turkey Circular Economy Platform aimed to support the Company's R&D and innovation efforts on the development of alternative circular economy models for the industry, which is paving the way for the Company's undertakings on the re-utilisation of a large by-product of its operations (brewers spent grain).

Company Contact Information

Asli Kilic Demirel
asli.kilic@anadoluefes.com
0 216 586 80 72
0 216 389 58 63
https://www.anadoluefes.com/
Fatih Sultan Mehmet Mah. Balkan Cad. No:58 Buyaka E Blok Tepeüstü / Ümraniye 34771 İstanbul

PSD last updated

15 Nov 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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