Turk Traktor Green Loan (EBRD-54165)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Turkiye
Geographic location where the impacts of the investment may be experienced.
Specific Location
Sakarya, Ankara
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
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
Jun 14, 2023
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
Turk Traktor ve Ziraat Makineleri A.S.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Energy
  • 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)
$ 75.07 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 70
Converted using 2023-09-05 exchange rate.
Loan Amount (USD)
$ 75.07 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 70
Converted using 2023-09-05 exchange rate.
Project Cost (USD)
$ 75.07 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 70
Converted using 2023-09-05 exchange rate.
Bank Documents
Primary Source

Original disclosure @ EBRD website

Updated in EWS Oct 14, 2023

Disclosed by Bank Sep 5, 2023

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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.

As stated on the project disclosure page, the EBRD provided up to EUR 70 million long-term loan to Turk Traktor ve Ziraat Makineleri A.S. to implement a capex programme that includes (i) modernization of existing manufacturing plants located in Sakarya and Ankara for the implementation of EU Stage V compliant engine production, as well as associated R&D; and (ii) installation of a greenfield rooftop solar plant at Sakarya plant with an installed capacity of 4.3MW.

The Project will enable Company to produce engines compliant with EU Stage V emission standards hence will result lower emissions and increase renewable energy consumption. In addition, the Project will help the Company to strengthen human capital and gender equality by promoting more open and equal economic opportunities in a traditionally male-dominated sector. This will be achieved through upgrades of HR policies and practices with the view to achieve greater workforce diversity among both white and blue collars.

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

Ass stated by the EBRD, Turk Traktor, incorporated in Turkiye, is a manufacturer of tractors, agricultural and construction machinery. The Company operates as a joint venture between Koc Holding A.S. and CNH Industrial Osterreich GmbH each holding 37.5% equity stake. 25% of the shares are listed on 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
CNH Industrial NV Investor Industry and Trade invests in Turk Traktor ve Ziraat Makineleri A.S. Client Industry and Trade
Koc Holding AS Investor Finance invests in Turk Traktor ve Ziraat Makineleri A.S. Client Industry and Trade

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.

Client - Turk Traktor ve Ziraat Makineleri A.S.:

Sahika Turkozu
Email: sahika.turkozu@turktraktor.com.tr
Phone: +903122332542
Website: http://www.turktraktor.com.tr/
Address: Gazi Mahallesi Anadolu Bulvari No: 52 - 52A 06560 - Yenimahalle / ANKARA

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

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 at: 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

How it works

How it works