FMO, the Dutch entrepreneurial development bank, announced today it will provide a USD 25 mln senior debt facility to Armada Foods, a Turkish agri-processing company that originates, processes, and distributes various pulses such as lentils, bulgur, chickpeas, beans, and rice for the local and international market. The financing will be used to procure the resources necessary to support Armada’s growth strategy and to build a new complex to double its processing capacity in line with increasing market demand.
A strong local and family-owned company founded in 1993, Armada Foods is a highly experienced enterprise located in Mersin, a logistical center for the global pulses supply chain. Pulses, or legumes, are vegetables that are an important source of protein and play a critical role in sustainable agriculture by promoting soil biodiversity.
All of Armada Food’s operations take place in this rural province at their facility based in the port. They have a ~30-year track record in the industry, and ~5 years in organic pulses segment, an emerging but increasingly popular segment for the company. Approximately 70% of the pulses are exported throughout Europe, the Middle East, and North Africa. Within the latter two regions, Armada Foods is a longstanding partner of international aid organizations such as the World Food Program and the International Committee of the Red Cross.
In line with the increased demand for pulses, including organic products, Armada Food requires expansion for organic and conventional products, and has planned a capex investment to double capacity through a new processing and storage complex.
FMO’s financing will provide the necessary support to finance both the capex investment and working capital requirements to carry out and implement the construction of the new processing facility. This will help Armada Foods increase its contribution to food security in the regions it is active in, including fragile- and conflict-affected states (FCAS).
Pieternel Boogaard, Agribusiness, Food & Water Director FMO, said: “FMO is very pleased to welcome our new client Armada Foods, a producer of healthy and increasingly important vegetable proteins. Armada Foods is a designated supplier and a longstanding partner of international aid organizations which are crucial in supplying high protein staple food to fragile states, especially in Africa. We look forward to a long and fruitful partnership.”
Fethi Kalıpçı Sönmez, Chairperson Armada Foods, said: "We are happy to join forces with FMO, as we believe this strategic finance facility will strengthen our capability and capacity in the staple foods supply & value chain with our growing operations and footprint. Armada Foods will work to ensure food security by considering the rising demand to plant-based protein while focusing on global climate change, social and environmental issues."
This latest transaction follows on FMO’s increased investments in the Turkish agriculture sector within the past year, such as FMO’s support for Tiryaki Agro, one of Turkey’s leading agricultural commodity traders, and Ulusoy Un, one of Turkey’s largest wheat flour milling companies. In addition to further strengthening its presence and exposure in the sector, this transaction contributes to SDG 8 of decent work and economic growth by increasing employment in the local region, as well as SDG 5 for gender equality by more than doubling the number of women contracted. Finally, it contributes to SDG 2 of zero hunger through (increasing the) distribution of pulses to international markets, including FCAS.
About Armada Foods
Armada Foods is an important food and agri-business, supplying pulses and grains including special crops (lentil, bulgur and chickpea) and organic products to its customers worldwide, ranging from global business and aid organizations to regional small to mid-cap businesses.