Project detail - Isik Tarim Urunleri Sanayi ve Ticaret Anonim Sirketi

Isik Tarim Urunleri Sanayi ve Ticaret Anonim Sirketi

Status: Approved investment
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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

Işık Tarım Urunleri Sanayi ve Ticaret A.S. (“Işık Tarım”) is a Turkish company, engaged in an integrated value chain for organic fruit-based food and consumer products in dried fruit, hazelnut, and frozen fruit segments. Fruits are originated from over 4,000 contracted farmers in Türkiye, processed in its processing facilities and fully exported to international markets. Işık Tarım promotes organic farming and integrates smallholder farmers into their organic agri-production network through their “Happy Village Program”, which is supports farmers through technical assistance, input supply and organic certification processes, amongst others.

What is our funding objective?

Potential USD 18 mln funding from FMO will finance Isik Tarim in relation to their procurements from the contracted farmers within their Happy Village Program. Long term-financing will address the permanent working capital requirements arising from their integrated supply chain and long cash cycle.

Why do we fund this investment?

The investment is 100% Green Label in view of the organic supply chain of Isik Tarim and 100% Reducing Inequalities Label in view of the Company’s support to the contracted farmers with an average land size of 1-10 Ha through its Happy Village Program. Also, FMO financing will enable Isik Tarim to purchase farmers’ products in larger quantities and process and export larger volumes, i.e., more economic activity in rural Türkiye through contribution to direct and indirect employment.

What is the Environmental and Social categorization rationale?

The E&S risk category of this investment 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 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. 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, PS6 (Biodiversity Conservation and Sustainable Management of Living Natural Resources) is only applicable for risks associated to the supply chains. FMO will periodically review the project’s ongoing compliance with the Performance Standards.

Website customer/investment
https://www.isiktarim.com
Region
Europe & Central Asia
Country
Türkiye
Sector
Agribusiness, Food & Water
Publication date
7/25/2024
Effective date
11/1/2024
Total FMO financing
USD 18.00 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+