Project detail - AEP ANADOLU ETAP PENKON GIDA VE TAR

AEP ANADOLU ETAP PENKON GIDA VE TAR

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Who is our client

AEP Anadolu Etap Penkon Gida ve Tarim Ürünleri Sanayi ve Ticaret A.S. (“Anadolu Etap”) is a joint venture between Anadolu Efes Biracilik ve Malt Sanayi A. S. and Özgörkey Holding A.S., predominantly active in the primary production of fruit and processing of fruit juice concentrate and puree.

Funding objective

FMO intends to participate for up-to EUR 30 million in a EUR 60 million senior and long term EBRD-led syndicated loan facility. The funds will be used for financing working capital requirements of Anadolu Etap while optimizing the balance sheet structure.

Why we fund this project

FMO wishes to support a major agri player in Turkey, who has invested in an integrated value chain for growing healthy fruits for healthy generations. This EBRD-led financing will further support the company’s successful management of its operations, contributing to sustainable development, via primary production of fresh fruit in large-scale orchards in Turkey, women employment in these orchards, generating hard currency income for the country via its exports, and its commitment to the sustainable agriculture principles and distribution / logistics of the products to end consumers in high sanitary and quality standards.

Environmental and social rationale

E&S risks are categorized as Category B+ mainly due to working conditions for temporary workers, and supply chain risks. These potential risks can be mitigated when managed according to the following IFC performance standards: PS 1 Assessment and Management of Environmental and Social Risks, PS 2 Labor and working conditions, PS 3 Resource Efficiency and Pollution Prevention, PS 4 Community Health, Safety and Security, and PS 6 Biodiversity Conservation and Sustainable Management of Living Natural Resources. There is no new land acquisition neither involuntary resettlement (PS5) as part of this project. The project sites are not in the sphere of influence of Indigenous People (PS 7) nor Cultural heritage (PS8), based on this performance standards 5, 7, and 8 are not applicable. If FMO’s investment proceeds, FMO will periodically review the project’s compliance with the Performance Standards and adequate mitigation measures will be agreed.

Region
Europe & Central Asia
Country
Turkey
Sector
Agribusiness, Food & Water
Signing date
5/14/2020
Total FMO financing
EUR 30.00 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B+