DFF - May Seed Loan Expansion

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Provision of EUR 7.5m senior loan for financing the company's working capital needs, as well as research and development (R&D) and production capital expenditures.

Project ID 53391

Status Repaying

Location

Türkiye

Business Sector

Food and Agribusiness

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Mr. Yusuf Yormazoglu
yusuf.yormazoglu@may.com.tr
+90 224 351 45 00
+90 (224) 351 45 18
https://www.may.com.tr/
Samanli Mah. Yigitler Cad. No:28 16275 Bursa/TURKEY

Project ID 53391

Status Repaying

Location

Türkiye

Business Sector

Food and Agribusiness

Notice Type

Private

Environmental Category

Approval Date

31 May 2022

Disclosure date

15 Jun 2022

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."

DFF - May Seed Loan Expansion (Turkish) (PDF, 0.37MB)

Project description

Provision of EUR 7.5m senior loan for financing the company's working capital needs, as well as research and development (R&D) and production capital expenditures.

Project objectives

The key objective of the Project is to support the company's growth via the expansion of production and R&D capacities and working capital financing.

Transition impact

ETI Score:60

ong>Competitive: the Project will support i) ongoing R&D programmes via further improvement of R&D efficiency and commercialisation of in-house developed products resulting from R&D; ii) higher uptake of water efficient drip irrigation in the supply chain for sunflower seeds production leading to higher water savings and agricultural productivity. Inclusive: the company will introduce i) a nationally-accredited vocational training programme for low-skilled young farmers; ii) a training programme on financial and climate literacy and other topics for experienced farmers in less developed cities of Turkey.

Client information

MAY AGRO TOHUMCULUK SANAYI VE TICARET AS

One of the leading private producers of seeds in Turkey and a pioneer in the field of seed production (including R&D).

EBRD Finance Summary

EUR 7,500,000.00

Total project cost

EUR 7,500,000.00

Additionality

-Risk mitigation: EBRD's long-term relationship provides comfort to the client to take on more risk and/or finance, enabling outcomes such as innovation or expansion into new markets.

-Standard-setting: Client makes use of EBRD expertise on higher inclusion and gender standards.

Environmental & Social Summary

Categorised B (ESP 2019) and rated Low-Medium risk. Environmental and social risks related to the May Seed's operations in seed R&D, seed production and distribution are predominantly site specific and can be managed by appropriate mitigation measures. The Environmental and Social Due Diligence (ESDD) was undertaken by staff from the Bank's Environment and Sustainability Department in line with the COVID-19 approach through the review of E&S reports, E&S questionnaires, supporting documents and calls. The Project is consistent with the Green Energy Transition Approach.

The E&S review covered a wide range of topics including the potential E&S risks and liabilities of company's own production facility, occupational health & safety, supply chain management, labour practises, emissions and potential climate risks. The review demonstrated the Company's operations have limited E&S impacts, and those impacts are well managed through the implementation of international standard ISO-certified environmental, health, safety and quality management systems. The product quality is stringently controlled by May at all production stages. The production facilities are certified under ISO 9001 (Quality Management), ISO 14001 (Environment Management) and OHSAS 18001 (Occupational Health and Safety). May is not involved in the production of seeds containing genetically modified organism (GMO) and has testing and traceability systems in place to control the risk at all stages of production and distribution

To address identified E&S issues, an environmental and social action plan (ESAP) will be agreed with May Seed before signing. The ESAP is structured to ensure the Company's compliance with the Bank's Performance Requirements and on developing the Company's approach to increasing climate resilience in contracts and customer farming through research in to and adoption of sustainable cultivation management techniques such as low-till agriculture via field trials, training and guidance for agronomists, contract farmers, non-contract farmers and ultimately customers.

Technical Cooperation and Grant Financing

Inclusion TC to support the development of the two training programmes for farmers, TCRS 12804. Funding Source: Turkish Government Fund or SSF (expected).

Company Contact Information

Mr. Yusuf Yormazoglu
yusuf.yormazoglu@may.com.tr
+90 224 351 45 00
+90 (224) 351 45 18
https://www.may.com.tr/
Samanli Mah. Yigitler Cad. No:28 16275 Bursa/TURKEY

PSD last updated

15 Jun 2022

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 the 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 its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) 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 also requires its clients to disclose information, as appropriate, about the risks and impacts of 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 of the Bank's activities 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 EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either 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. OCCO will follow-up all matters reported. It will review all matters reported. 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, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. 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 (for example, 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 the 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 and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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DFF - May Seed Loan Expansion

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)