Project detail - ARMADA GIDA TİCARET SANAYİ ANONİM ŞİRKETİ

Who is our prospective customer?

Armada Foods is one of the largest pulse 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, including origination, storage, processing, sieving, packaging, and distribution of the final products to the domestic and international markets through business-to-business (B2B) and business-to-consumer (B2C) channels. The processing and storage facilities of Armada Foods are located in Mersin, an important port city on Türkiye's Mediterranean coast and a logistical hub for the global pulses market.

What is our funding objective?

FMO is arranging a long-term facility of USD 110 million to finance capital expenditures (capex) and working capital (WC) requirements for the expansion of the existing Armada-3 facility, the construction of the state-of-the-art Armada-4 facility in Mersin, and a new light-processing facility in Kazakhstan. FMO’s own share will be up to USD 70 million, and the remaining portion will be funded by parallel lenders and participants.

Why do we want to fund this investment?

By supporting Armada Foods, FMO supports an important agribusiness player with upstream agricultural sector linkages in Türkiye. Specifically, Armada Foods produces and exports affordable, nutritious food products, such as extrusion-based products and pulses, to the Middle East and Africa through international aid organizations or directly to the buyers, contributing to food security in these regions. Armada Foods contributes to economic activity and job creation in rural Türkiye, while increasing the percentage of female employees and generating hard currency through exports. The company also improves energy and resource efficiency and reduces food waste by using the best available technology (BAT) in its state-of-the-art production facilities.

What is the Environmental and Social categorization rationale?

The investment is considered E&S Category B+, with moderate, site-specific risks linked to construction management, industrial Occupational Health and Safety (OHS), and energy use and emissions. While risks in Türkiye are comparatively more manageable, expansion beyond Türkiye’s borders introduces greater contextual uncertainties that may affect supply chains, workforce conditions, and operational resilience—heightening the need to strengthen the company’s E&S oversight capacity to ensure consistent implementation across diverse regulatory environments. The investment triggers IFC Performance Standards (PS) PS1–PS4 and PS6, covering environmental and social management systems; labor and working conditions; resource efficiency and pollution prevention; community health and safety; and biodiversity considerations in agricultural supply chains. PS5 does not apply as construction occurs within existing industrial estates, and PS7 and PS8 do not apply due to no land impacts, no Indigenous Peoples, and no cultural-heritage concerns. Ongoing E&S reporting and supervision, supported by the Environmental and Social Action Plan (ESAP), will ensure continued alignment with international standards.

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