LEF: Dimes

Location:

Turkey

Project number:

40085

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

11 Sep 2009

Status:

Board Approved

PSD disclosed:

22 May 2009

Project Description

The EBRD is considering a loan of up to USD 18.5 million. The proposed loan would finance the Company’s annual fruit purchases for producing concentrates used in juice products.

Transition Impact

1. Backward linkages
The Company has a strong working relationship with farmers in the fruit and dairy sector, which will be extended by the longer-tenored working capital loan from EBRD which will be used to purchase fruit and milk from farmers in Turkey.

The proposed Project will provide working capital financing which will create additional funds for pre-financing arrangements and in turn create additional opportunities for primary agricultural producers to increase their production and secure their output. Currently, farmers still suffer from a lack of predictable off-takes and financing which negatively impacts efficiency in their operations and product quality.

2. Standards for corporate governance and business conduct
The proposed Project will improve the Company’s standards of corporate governance and transparency through consolidation of separate entities under one holding company, including formalising the management structure and implementing IFRS auditing.

The Client

Diren Yatirim A.Ş., the holding company for Dimes Group of Companies (“Dimes”, the “Sponsor”), one of the leading juice and UHT milk producers in Turkey controlled by the Diren family. The Borrower will be Dimes Gıda A.Ş (“Borrower”), which is the main subsidiary of the Sponsor.

EBRD Finance

USD 18.5 million semi-revolving working capital loan.

Project Cost

USD 18.5 million

Environmental Impact

The Project was screened Category B in accordance with EBRD’s Environmental and Social Policy (2008).

The Bank’s environmental and social due diligence included a site visit to the Company’s production facility in Izmir and an integrated corporate audit that was completed by an independent consultant. Results confirmed that Dimes operates in material compliance with relevant Turkish and EU legislation, as well as EBRD’s Environmental and Social Policy and Performance Requirements. The audit further identified that Dimes has adopted a fully integrated management systems approach and has achieved and maintained certification to ISO9001, ISO14001, OHSAS18001, and ISO22000.

Minor environmental, social and occupational, health and safety issues that were identified by the audit have been incorporated into an Environmental and Social Action Plan (ESAP). As a condition of the Loan Agreement, the ESAP will need to be agreed upon by the Company and implemented over a scheduled period of time. Furthermore, the Bank will monitor Dimes’ performance for the lifetime of the loan through annual environmental and social reporting and periodic site visits.

This section of the PSD will be revised periodically in accordance with the Bank’s ongoing environmental and social due diligence.

Technical Cooperation

None

Company Contact

Ozan Diren
Board Member
Diren Yatirim A.S.
Yukari Dudullu Mahallesi Miras SokokNo: 57 Kat: 2 Umraniye
Istanbul / Turkey
Tel: +90 216 499 7406
E-mail: ozan@diren.com

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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