ARMADA GIDA TİCARET SANAYİ ANONİM Ş
Status: Approved investmentWhy disclosure?
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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
Armada Foods is one of the largest pulses processors in Turkey, exporting various types of packaged pulses to Europe, Middle East, and Asia. Its business model entails managing a supply chain for various products, such as lentils, bulgur, chickpeas, beans and rice, including origination, storage, processing, sieving, packaging, and distribution of the final products. Processing and storage complex of Armada Foods is located in Mersin, an important port city of Turkey on the Mediterranean coast as well as a logistical hub for the global pulses market.
What is our funding objective?
FMO’s USD 25 mln funding will support the growth strategy of Armada Foods, by financing company’s capex investment in a new processing and storage complex in Mersin, doubling the total capacity, as well as increasing WC requirements of the company related to its agri-supply chain. The split of FMO financing will be USD 15 mln for capex finance and USD 10 mln for WC finance.
Why do we fund this investment?
FMO supports an important agribusiness player that has linkages in the up-stream agricultural sector in Turkey, while contributing to the SDG 2 (Zero Hunger) and SDG 8 (Decent Work & Economic Growth). Armada Foods is a longstanding partner of the international aid organizations, such as WFP and Red Cross, supplying high protein staple food to the Middle East and Africa. FMO financing will enable the company to further grow its contribution to the food security in these regions. Moreover, Armada Foods will contribute to the employment in the rural provinces of Turkey after commencing its new investment in Mersin.
What is the Environmental and Social categorization rationale?
Armada is a Category B+ client. This is based on limited and site-specific environmental and social risks and impacts at the processing plants and supply chain. These risks and impacts can be easily avoided or mitigated by incorporating Good International Industry Practices, including World Bank Group (WBG) Environmental, Health and Safety (EHS) General Guidelines for the operated plants and Good Agricultural Practice support in the supply chain for pulses. The following IFC’s Performance Standards (PSs) are applicable for this investment: PS1: Assessment and Management of Environmental and Social Risks and Impacts, PS2: Labor and Working Conditions, PS3: Resource Efficiency and Pollution Prevention and PS4: Community Health, Safety, and Security working with the supply chain. PS5: Land Acquisition and Involuntary Resettlement does not apply as there is no land transaction linked to this financing involving involuntary physical or economic displacement; PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources does not apply as the supply chains in which Armada is engaged are located in agricultural consolidated areas; PS7 and PS8 on Indigenous Peoples and Cultural Heritage are not applicable because the supply chains are located in areas consolidated for agriculture without impacts on indigenous peoples, tangible or intangible cultural heritage. FMO will periodically review the project’s ongoing compliance with the Performance Standards.
More investments
| Date | Total FMO financing |
|---|---|
| 7/28/2022 | USD 5.00 MLN |
| 7/28/2022 | USD 10.00 MLN |
| 3/25/2024 | USD 12.00 MLN |
- Region
- Europe & Central Asia
- Country
- Türkiye
- Sector
- Agribusiness, Food & Water
- Publication date
- 4/25/2022
- Effective date
- 7/28/2022
- Total FMO financing
- USD 10.00 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+