KILIC DENIZ URUNLERI URETIMI IHRACA
Status: Approved investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Kılıç Deniz started its operations in 1993 and has become a major aquaculture player in Turkey, operating a fully integrated value chain with offshore and inland facilities. Aquaculture operations of Kılıç Deniz are organized in four business segments: (i) offshore marine farms - production of seabass, seabream and meagre; (ii) inland fresh-water farms - production of trout and salmon trout; (iii) fattening and farming of tuna and (iv) juvenile fish hatchery and fish feed production.
What is our funding objective?
FMO arranged a a 7-year EUR 80 million Syndicated Term Loan facility. Syndicated Term Loan facility will bring additional potential participants from other international development and financial institutions and will replace the existing EUR 50 million FMO facility. The funds will be used to finance capital expenditures and additional working capital for expansion and for balance sheet improvement by consolidating or refinancing some of Kılıç Deniz’s existing short-term loans with a longer maturity.
Why do we fund this investment?
FMO wishes to support an aquaculture player in Turkey which is involved in growing and producing sustainable certified fish. The transaction will support i) creating new jobs in rural areas of Turkey and ii) generating hard currency for Turkey via its seafood exports to 60 countries. With this transaction, FMO will contribute to reducing hunger, decent work and economic growth, responsible consumption & production and climate action.
What is the Environmental and Social categorization rationale?
E&S risks are categorized as Category B+ mainly due to supply chain risks, which must be managed in a manner consistent with the following IFC performance standards: PS 2 Labor and working conditions, PS 3 Resource Efficiency and Pollution Prevention, PS 4 Community Health, Safety and Security. Client manages its environmental and biodiversity risks according to international standards and PS 1 Assessment and Management of Environmental and Social Risks, and PS 6 Biodiversity Conservation and Sustainable Management of Living Natural Resources. PS 5 Land Acquisition and Involuntary Resettlement does not apply because client’s operations are established in industrial zones, and farm cages 1,000m away from coastal areas in areas assigned and approved by the local government. PS 7 Indigenous People and PS 8 Cultural Heritage do not apply because no local nor native communities are close to the company’s operations.
More investments
| Date | Total FMO financing |
|---|---|
| 3/14/2023 | EUR 0.02 MLN |
| 1/11/2023 | EUR 25.00 MLN |
- Region
- Europe & Central Asia
- Country
- Türkiye
- Sector
- Agribusiness, Food & Water
- Effective date
- 3/8/2021
- Total FMO financing
- EUR 65.00 MLN
- Funding
- FMO NV
-
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+