Project Description
Provision of an up to EUR 30 million working capital loan (the "Loan") to Savola Gida Sanayi Ve Ticaret AS ("Savola Turkey", the "Company"), a corporation incorporated in the Republic of Turkey.
The Loan will be used by Savola Turkey to support its permanent working capital needs (the "Project").
Project Objectives
The EBRD's financing will be used for the procurement of crude sunflower oil and other inputs. The Bank aims to support Savola Turkey with longer term financing, as the Company continues to develop its operations in Turkey.
Transition Impact
ETI score: 61
The expected transition impact of the Project stems from the Competitive and Green qualities. Under the Competitive quality, the Project will support the expansion of the Company's farmer support programme. Among other initiatives, the Company is providing training for farmers in rural areas, leading to higher operational standards and output. Under the Green quality, the Bank will support the Company as it expands its seed development programme, under which more resilient seeds will be certified and made available to farmers.
Client Information
SAVOLA GIDA SANAYI VE TICARET AS
Savola Turkey is an edible oil and specialty fats producer. The Company is fully owned by Savola Group Company, one of Saudi Arabia's leading agribusiness companies with a strong regional presence, and engaged in food production and food retail.
EBRD Finance Summary
EUR 30,000,000.00
3 year working capital loan.
Total Project Cost
EUR 30,000,000.00
Additionality
In relation to the financing structure, the EBRD offers both a tenor and local currency financing on terms not readily available in the market. Additionally, in terms of risk mitigation, EBRD's long-term relationship provides comfort to the client to continue investing in its operations and by mitigating non-financial risks (i.e. country, market, political risks).
Environmental and Social Summary
Categorised B (ESP 2019). Savola Turkey is an existing client of the Bank and performance to date in terms of compliance with the existing Environmental and Social Action Plan (ESAP) and the Bank's Performance Requirements has been satisfactory. The provision of working capital for purchase of unrefined bulk vegetable oil is not, in itself, associated with any significant environmental or social impacts. The current ESAP includes requirements for further development of health and safety, supply chain, and grievance management and development of improved stakeholder engagement. Annual environmental and social reporting provided to date does not indicate any issues and demonstrates that the Company is implementing the ESAP as agreed and has adequate capacity and procedures in place to manage the key issues. Given the low E&S risk associated with this project and the adequate performance of the Company to date, no further E&S actions are required for this project. The Company is required to continue compliance with the Bank's PRs and to provide the Bank with annual reporting on E&S issues.
Technical Cooperation and Grant Financing
N/A
Company Contact Information
nullsavolainfo@savola.com
+90 216 578 68 00
+90 216 573 66 34
www.savolagida.com.tr
Barbaros Mah. Kardelen Sok. No: 2 /123 Kat:36 Palladium Tower Atasehir / Istanbul
PSD last updated
09 Aug 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.
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.
