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
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 and 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 EBRD (not related to procurement) contact:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com
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Tel: +44 20 7338 6794
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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.
