This project is still under review by the EWS. Project information and/or project analysis may be incomplete.
Tiryaki Equity (EBRD-43885)

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
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
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
May 9, 2012
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 Apr 3, 2012


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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 a US$ 25 million subscription to newly issued common shares of Tiryaki, a leading Turkish corporate in trading of agricultural commodities operating in Turkey and in the surrounding region. TRANSITION IMPACT When approved by the EBRD's Board of Directors, specific transition impact objectives will be drawn primarily from the following areas: 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 majority owned by the Tiryakioglu family while Gulf Growth Agro Fund of Investcorp, a private equity fund, holds a minority stake. EBRD FINANCE Up to US$ 25 million of equity investment. PROJECT COST US$ 25 million. ENVIRONMENTAL IMPACT Screening categories and rationale for classificationCategorised B in accordance with the EBRD's E&S Policy 2008: due diligence of company operations was undertaken in 2011 by EBRD specialists has confirmed that E&S impacts at the company's fixed assets are site specific and any residual risks have been addressed by way of an agreed action plan. Additional E&S risks in the supply chain are to be reviewed and assessed by the company as a result of EBRD's involvement with the company.Information reviewedDue diligence comprised a site visit by EBRD specialists, management discussions and document review during August 2011. Due diligence completed in 2011 is considered by EBRD to be sufficiently up to date for this project.Environmental and Social issuesTiryaki is currently implementing a growth strategy and has ambitions to become an international operator in the food commodities sector. The company has evolved since founding in 1960s and company management has stated the ambition to meet international standards with regard to E&S stewardship across all company operations. Management of environmental and social risks has historically been regulatory driven and is partially governed by quality and food safety management systems.Formalisation of an E&S mission statement, policy and management systems certified to international standards is a logical next step in the company's evolution and will address residual E&S risks identified during due diligence. Such issues include: achieving certification for appropriate E&S management systems; ensuring HR policies are consistent for all employees; reviewing H&S procedures on site; ensuring regulatory compliance is maintained; and taking a more proactive approach management of third party suppliers and contractors.EBRD does not expect this to be a significant challenge for the company when considering the scale of the operational risks and the current organisational capacity of the company.Environmental & social opportunitiesThe company has the opportunity to review E&S management procedures to maximise energy and resource efficiency and to minimise operating impacts. Additional opportunities relate to the company's involvement in regional climate change impact studies (with the assistance of EBRD) and reduction of labour and sustainability issues in the primary agricultural sector in Turkey and beyond.Summary of Environmental and Social Action PlanAn environmental and social action plan has been developed and agreed with the company. The majority of the ESAP items reflect the ambition of the company to meet international standards while also satisfying the requirements of the EBRD's E&S Policy. Minor capital costs are expected to be associated with the ESAP items and management of associated risks will have the added benefit of minimising the potential for E&S issues to impact business operation in supply chain, logistics and processing.The company has agreed through the ESAP to undertake a benchmarking exercise of existing operations and new facilities (at the appropriate time) against the applicable sections of the IPPC EU BREF note on Food, Drink and Milk Industries (2006) over the next 3-5 years. Furthermore the company is to commission a study into the potential risks associated with climate change, water scarcity and adverse weather conditions in the supply chain, logistics and processing.The ESAP also commits the company to identify and engage with company stakeholder regarding Project impacts and opportunities. TECHNICAL COOPERATION None. COMPANY CONTACT Ertan AkbulutTreasury and Risk Group ManagerPBX: +90 (216) 333 20 00Fax: +90 (216) 333 20 20E-mail: ertan.akbulut@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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