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Who is our client

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.

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 we fund this project

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.

Environmental and social 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
Europe & Central Asia
Agribusiness, Food & Water
Signing date
Total FMO financing
USD 10.00 MLN
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)