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LDC Agricultural Finance and Standards Promotion



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

19 Jul 2023



PSD disclosed:

11 May 2023

Project Description

USD 100 million revolving loan to finance part of the working capital needs of the subsidiaries of Louis Dreyfus Company B.V. ("LDC", "the Company") active in Bulgaria, Egypt, Kazakhstan, Poland, Romania, Tajikistan, Türkiye and Ukraine for the merchandising activities (including purchase, storage, processing and transportation) of agricultural commodities from and / or in(to) these countries.

Project Objectives

Working capital needs associated with merchandising of agricultural commodities are seasonal and at prices that fluctuate throughout the year. The project will provide stable working capital financing for merchandising of agricultural commodities from and/or in(to) the project countries listed above where local funding of agricultural activity is constrained.

Transition Impact

ETI score: 69

The transition impact of the project is based on its contribution under the "Competitive" and "Resilient" qualities in the main agricultural supply chains among the project countries.

As part of this project, LDC will undertake to steadily increase the volume and share of cotton it purchases in Türkiye that is certified under the Better Cotton Initiative (BCI) and the associated number of cotton ginners and (indirectly) farmers from which LDC will purchase BCI-certified cotton in Türkiye, as well as to cover half of the costs for a capacity-support program during the next three years that will focus on increasing the awareness and training of Turkish cotton farmers to adopt BCI standards. Such measures will also translate into markedly supporting Turkish cotton production and supply to become more sustainable and resource-efficient. Financing of cotton purchases in Türkiye as part of this project will also support the livelihoods and liquidity of many cotton farmers and ginners located in areas impacted by earthquakes in the country.

Meanwhile, in the context of this project but subject to capacity and safe conditions for shipment operations allowing to do so, LDC intends to increase its grain and oilseeds purchasing in and exports from Ukraine, while aiming for a higher share of such purchases directly from more small-medium farmers. Doing so will provide important support to Ukrainian grain farmers through the sale of their grain harvests and access to liquidity, in a context of more limited financing under the prevailing war conditions in Ukraine. In parallel, this is expected to also support greater access to food in grain deficit countries (such as Egypt but not only) in the Mediterranean, (North) Africa, Middle East and Central Asian regions, given the important grain trade flows in which LDC is present from Ukraine into the aforementioned regions.

Client Information


Founded in 1851 and active in more than 100 countries, LDC ( is a leading global merchant and processor of food and agricultural products, which originates, processes, transports and trades more than 80 million tons of products annually.

EBRD Finance Summary

USD 100,000,000.00

Up to USD 100 million, 3 to 5 year, revolving loan to partially finance the working capital needs of LDC's subsidiaries in relation to merchandising of agricultural commodities from and / or in(to) the project countries listed above.

Total Project Cost

USD 300,000,000.00

Actual financing needs will fluctuate based on commodity prices and volumes, but are estimated at ca. USD 300 million.


The additionality of the project is derived from its financing structure, risk mitigation and standard setting features. The Bank offers a significant financing amount dedicated to merchandising of agricultural commodities in the Bank's region of operations across the eight project countries listed above, which are prone to local funding constrains for agricultural activities. The Bank's loan will have a longer tenor than often shorter working capital loans provided by local banks for agricultural activities, while the Bank's loan can also be utilised by LDC in Turkish lira and Egyptian pounds. In addition, the Bank's loan incorporates (temporary) repayment deferral clauses in case of export bans from certain project countries of relevant agricultural commodities. Lastly, the conditions agreed by LDC under this project, to support higher uptake and production of BCI-certified cotton in Türkiye, are expected to drive and demonstrate better environmental and social standards in the Turkish cotton sector compared to the present.

Environmental and Social Summary

Categorised B and Low Medium Risk.

LDC is well known to the Bank through previous transactions and the Company's management of environmental and social (E&S) issues to both directly managed activities and its supply chain has proved satisfactory to the Bank. LDC has put in place a comprehensive global Safety, Health and Environment ("SHE") Management System with core elements that address the Bank's Performance Requirements (PRs).

In the context of this project, the purchase, import and export of grains and oilseeds is not associated with significant environmental or social impacts, while the key E&S risks will be around the cotton supply chain, with well-understood risks around labour management, water usage and chemical storage, application and disposal. Through this project, LDC will considerably increase the share of cotton it procures in Türkiye that is certified under the Better Cotton Initiative (BCI). The Company will also support efforts to increase awareness and training of cotton farmers in Türkiye to adopt BCI standards. These actions will promote more sustainable and resilient cotton production in Türkiye. 

LDC has a good understanding of its exposure to sustainability issues and deforestation in its supply chains, with advanced traceability systems in place, and reliance on sustainable sourcing certifications that mitigate potential risks associated with deforestation and conversion of high carbon stock / biodiversity land. Among others, LDC has made public commitments to eliminate deforestation and native vegetation conversion for agricultural purposes from its supply chains by the end of 2025, and to reduce its Scope 1 & 2 greenhouse gas (GHG) emissions by 33.6% by the end of 2030 (compared to 2022 baseline), in line with the level of ambition from SBTI. LDC has also indicated its intention to set scope 3 GHG emission reduction targets in the medium-term. 

To address selected monitoring issues identified during due diligence, the Company has agreed to implement a Climate Risk and Paris Alignment Monitoring Plan. Reporting under this plan will be provided alongside the standard annual E&S reporting to the Bank, in order to confirm ongoing compliance with the Bank's PRs and other policy requirements.

Technical Cooperation and Grant Financing

Technical cooperation in the form of a capacity-support program estimated at ca. EUR 200,000 during the next three years that aims to increase the awareness and training of Turkish cotton farmers to adopt BCI standards is being prepared in cooperation between United Nations Development Programme (UNDP) Türkiye, the Bank and LDC, and in partnership with Iyi Pamuk Uygulamalari Dernegi (IPUD) / the Good Cotton Practices Association (BCI strategic partner in Türkiye). LDC will contribute half of the costs of this capacity-support program.

Company Contact Information

Florence Genestin, Head of Financing and Treasury for EMEA
+41 (0)58 688 28 71
29 route de l'Aéroport, P.O. Box 236, 1215 Geneva 15, Switzerland

PSD last updated

11 May 2023

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

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Tel: +44 20 7338 6794

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 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 to get guidance and more information on IPAM and how to submit a request.


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