Project detail - ARMADA GIDA TİCARET SANAYİ ANONİM ŞİRKETİ

Who is our prospective customer?

Armada Foods is one of the largest pulses processors in Türkiye, exporting various types of packaged pulses to Europe, the Middle East, and Asia. Its business model entails managing a supply chain for various products, such as lentils, bulgur, chickpeas, beans and rice. This includes origination, storage, processing, sieving, packaging, and distribution of the final products to the domestic and international markets through B2B and B2C channels. The processing and storage facilities of Armada Foods are located in Mersin, an important port city of Türkiye on the Mediterranean coast as well as a logistical hub for the global pulses market. Armada Foods has been a client of FMO since 2022, when FMO provided a long-term facility of USD 25 million for financing capital expenditures (CAPEX) and working capital (WC) requirements of the newly constructed state-of-the art production facility in Mersin.

What is our funding objective?

FMO’s USD 12 million funding, which might increase up to USD 15 million, will support Armada Foods in the additional capex and WC needs for the new production units, located in this new production facility, which will be focusing on high value-added food products.

Why do we want to fund this investment?

By supporting Armada Foods, FMO supports an important agribusiness player that has linkages in the upstream agricultural sector in Türkiye. Specifically, Armada produces and exports volumes of affordable nutritious food products, such as super cereals and pulses, for the Middle East and Africa via international aid organizations. In doing so, it contributes to the food security in these regions. Armada also increases economic activity and provides for more jobs in rural Türkiye and generates hard currency via exports. Armada further realizes energy efficiencies through usage of the best available technology in their state-of-the-art production facilities.

What is the Environmental and Social categorization rationale?

Armada’s risk category is B. 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 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. E&S risks are mostly related to occupational health and safety related to industrial processing activities which are offset by high Turkish environmental, health and safety standards and regulations well applied and enforced in Türkiye. FMO will periodically review the project’s ongoing compliance with the Performance Standards.

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Date	Total FMO financing
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7/28/2022	USD 10.00 MLN