Project detail - KILIC DENIZ URUNLERI URETIMI IHRACA

KILIC DENIZ URUNLERI URETIMI IHRACA

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Who is our client

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.

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 we fund this project

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.

Environmental and social 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.

Region
Europe & Central Asia
Country
Turkey
Sector
Agribusiness, Food & Water
Signing date
3/8/2021
Total FMO financing
EUR 65.00 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+