Migros Ticaret - Bond (EBRD-50147)

Countries
  • Turkey
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jul 4, 2018
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
MIGROS TICARET AS
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 21.65 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 110
Converted using 2018-08-03 exchange rate.
Project Cost (USD)
$ 196.80 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 1000
Converted using 2018-08-03 exchange rate.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Aug 17, 2018

Disclosed by Bank Aug 3, 2018


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

This project invests in a bond issued by Migros Ticaret A.S., the proceeds of which will be used to refinance existing short-term loans taken on by the company.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

This is Migros Ticaret A.S's first bond issuance totaling TRY 150 million (EUR 27 million). The bond is listed on Borsa Istanbul.

The issuance is the first part of a continuing series under a bond programme with a total aggregate size of TRY 550 million (EUR 99 million). The Bank has approval for an investment of up to TRY 110 million (EUR 19.8 million) in the entire programme. Migros has an approval from Capital Markets Board to increase the issuance up to TRY 1 billion (EUR 180 million) if they choose to.

The bond will be denominated in local currency comprising of sub-tranches indexed to Turkish Lira Interbank Offer Rate (TRLIBOR) and Constant Maturity Treasury Reference (CMTR) as its benchmark rates with maturities of three and two years respectively. As part of this issuance Migros has received a credit rating of AA-/Stable outlook from Fitch.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Migros operates in 81 Turkish provinces, through a network of 1,976 food retail stores under Migros, M-Jet, 5M, and Macrocenter banners. The Company is also active in Kazakhstan and FYR Macedonia with 41 Ramstore outlets. Migros is 50% owned by Anadolu Grubu Holding A.S., the holding company of Anadolu Group. The remaining shareholding (23.2%) is held by a private equity consortium, and the remainder (26.8%) is free float on the Borsa Istanbul.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Anadolu Grubu Holding A.S. Parent Company -
- - - - Migros Ticaret A.S. Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Cem Dogan (Finance Director)
cemdo@migros.com.tr
+ 90 216 579 30 00
https://www.migroskurumsal.com 
Migros Ticaret A.S., Ataturk Mahallesi, Turgut Ozal Bulvari, No:7, Atasehir, Istanbul, Turkey

ACCOUNTABILITY MECHANISM OF EBRD
The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent. You can contact the PCM at pcm@ebrd.com or you can submit a complaint online using an online form, http://www.ebrd.com/eform/pcm/complaint_form?language=en. You can learn more about the PCM and how to file a complaint at http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html.

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