Project detail - Kilic Deniz Urunleri Uretimi Ihracat Ithalat ve Ticaret A.S.

Who is our prospective customer?

Kılıç Deniz started its operations in 1993 and has become a major aquaculture player in Türkiye, operating a fully integrated value chain with offshore and inland facilities. Aquaculture operations of Kılıç Deniz are organized in four business segments: (i) Mediterranean species (largest segment - integrated value chain for production of seabass, seabream and meagre, assets located primarily in Bodrum and Mersin provinces of Türkiye); ii) salmon trout (growing segment - integrated value chain for production of trout and salmon trout, assets located in South-eastern region of Türkiye for trout, and in the Black Sea region of Türkiye for salmon trout); iii) bluefin tuna (wild-catch and ranching of tuna in Mediterranean Sea), and; iv) juvenile production for its own needs and other aquaculture companies.

What is our funding objective?

FMO intends to arrange a new 7-year term loan facility of up to EUR 50 million. The funds will be used to finance up to EUR 25 million of capex investments related to the construction of a new fish feed mill, warehouses, and relocation of the existing fish feed mill, and the remaining EUR 25 million will be used for working capital requirements to meet the growing business needs of Kiliç Deniz.

Why do we want to fund this investment?

FMO wishes to support a leading aquaculture player in Türkiye, which is engaged in growing and producing sustainable, certified fish. This transaction will contribute to SDG 2 – zero hunger (contribution to the production and distribution of fish, as a nutritious and climate-smart animal protein), SDG8 – decent work & economic growth support (contribution to the increase in economic activity and employment in the rural regions and providing additional job opportunities), SDG10 – reducing inequalities (demonstrating a strong emphasis on workforce diversity), and SDG 13 – green (based on the Global GAP certification, which encompasses all of its fish feed production). With this transaction, FMO will contribute to the production and distribution of the fish, as a nutritious and climate-smart animal protein, the Company’s sustainable practices, and the continuous development of the aquaculture sector through innovation, sustainable management, and efficient use of resources in its operations. FMO labels the investment as Green and Reducing Inequalities.

What is the Environmental and Social categorization rationale?

The Kilic development of a new fish feed factory in Bodrum is categorized as B+, given associated risks of Performance Standard (PS) 1-4 and 6, most notably in the supply chain of procured goods (fish protein) and contractor management when building the new facility. The new fish feed factory will be developed on an industrial estate near the current facility of Kilic in Bodrum, hence not posing a risk for IFC PS5 and with no known risks related to indigenous peoples and cultural heritage (respectively PS7 and 8). Currently, the new facility intends to use fish and plant protein and fish oils as a source of input, with both wild-caught fish and trimmings (fish waste products) as key ingredients. Fish trimmings are the largest part of their fish feed input.

More investments

Date	Total FMO financing
3/14/2023	EUR 0.02 MLN
3/8/2021	EUR 65.00 MLN
1/11/2023	EUR 25.00 MLN