Project detail - Ulusoy Un Sanayi ve Ticaret AS

Who is our customer

Ulusoy Un Sanayi ve Ticaret A.Ş. (“Ulusoy”) is one of the largest wheat-flour milling companies in Turkey, milling, and selling flour domestically and for export to Middle East, Africa, and Asia. The company purchases wheat in Turkey and from abroad in Black Sea region and then processes it into flour in its milling facilities in the cities of Samsun and Çorlu/Tekirdağ. The company is also engaged in trading of wheat and other grains in domestic and international markets. Ulusoy Un is an existing client of FMO since 2018 when FMO has provided a long-term facility of USD 18 mln to the Company for financing of its new state-of-the-art flour mill in Samsun.

What is our funding objective?

Ulusoy has signed a termsheet with Moms Kitchen International S.a.r.l for the acquisition of Söke Degirmencilik San. ve Tic. A.S. (“Söke”), a local flour milling company, producing, and marketing packaged flour and specialty products under a recognisable consumer brand named ‘Söke Un’. FMO is providing a new long-term facility of up to USD 25 mln to Ulusoy to finance this acquisition and the acquired operations’ working capital requirements.

Why do we fund this investment?

FMO’s funding supports business growth of Ulusoy, by further improving flour milling capacity and local marketing and distribution network, enabling the company to vertically integrate towards branded consumer channels. The transaction contributes to tackling the commitment to zero hunger (processing and distributing flour as a staple food and contributes to food security in less developed markets in Middle East, Africa and Asia) and decent work & economic growth (employment opportunities in rural provinces of Turkey).

What is the Environmental and Social categorization rationale?

E&S risk categorisation is “B” (medium to low). IFC PS 1-4 are triggered. The company has several ISO certifications that serve as a backbone of its environmental and social management system. Company sources from highly mechanized producers of grains from Eastern Europe and Turkey. IFC PS 5-8 are not triggered, i.e., no acquisition of land or resettlement is in place, flour milling, and distribution activities of the company do not have a negative impact on the natural habitats, local population etc., no indigenous people were involved/affected by the operations of the company and/or FMO financing, and operations of the company are not located in any cultural heritage sites.

More investments

Date	Total FMO financing
12/15/2023	USD 12.00 MLN
12/13/2021	USD 10.00 MLN
9/10/2018	USD 18.00 MLN