This project is still under review by the EWS. Project information and/or project analysis may be incomplete.
Tiryaki Trading (EBRD-43069)

Countries
  • Turkiye
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
Active
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
Oct 11, 2011
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.
Investment Amount (USD)
Not Disclosed
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.
Primary Source

Original disclosure @ EBRD website

Disclosed by Bank Aug 25, 2011


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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.
PROJECT DESCRIPTION The EBRD is considering proving USD 52.5 million term loan to Tiryaki - one of the leading players in the organic and conventional agricultural production and processing of pulses, grains, oil seeds and nuts in Turkey and in the surrounding region (incl. CIS, North Africa and Middle East). The facility will be used to finance the company's working capital needs, in particular purchase and sale of pulses and grain commodities. The EBRD loan will come under the Syndicated Facility. TRANSITION IMPACT When approved by the EBRD's Board of Directors, specific transition impact objectives will be drawn primarily from the following areas:Promotion of good practices and organic farming in Turkey and CIS region. Tiryaki is one of the pioneers of the organic products market in Turkey. It received its first certified organic fields certificate in 2000 and since 2005 has also been working with organic farmers in the CIS region including one of the very few organic farming operations in Kazakhstan and Kyrgyzstan. With increased available funding, Tiryaki expects to increase its operations in these countries.Promotion of sustainable agriculture by reducing inefficiencies in the supply chain. Having the necessary logistical infrastructure, quality control, funding, sufficient storage and basic processing facilities, large local traders, like Tiryaki, are pivotal to the development of the primary agriculture in Turkey and CIS region, and presumably including parts of MENA. As such, unlike ordinary middlemen, companies like Tiryaki have a much greater stake in sustainable farming and are able to operate a business model that is based on a win-win relationship with the farmers, from whom it directly purchases its crops. The EBRD loan will effectively serve as the necessary bridge for connecting the Company and the respective farmers in Turkey and CIS on larger scale.Backward linkages. Tiryaki has an extended network of contracted farmers both for organic and conventional products. Sourcing raw materials directly from contracted farmers allow both better working capital and better quality control. Tiryaki intends to expand its direct purchases from farmers, and in doing so will disseminate the usage of elite quality seeds and modern chemical usage, raising output and increasing competition in the primary grain and pulses sector. THE CLIENT Tiryaki, based in Gaziantep (South-East of Turkey) and operating in a key segment of the agri-business value chain, has been identified as a strategic prospective client for the Bank. The Company exports to more than 40 countries and is sourcing raw materials from more than 20 countries. The Company is 80% owned by the Tiryakioglu family and 20% by the Gulf Growth Agro Fund of Investcorp, a private equity fund. EBRD FINANCE Up to USD 52.5 million term loan. PROJECT COST USD 175 million. ENVIRONMENTAL IMPACT Screening categories and rationale for classification TECHNICAL COOPERATION None. COMPANY CONTACT Muge ArtukTreasury ManagerPBX: +90 (216) 333 20 00Fax: +90 (216) 3332020E-mail:muge.a@tiryaki.net
Investment Description
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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.
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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