A Turkish flour producer, Ulusoy Un, will purchase, store and sell agro-commodities with a loan provided jointly by the EBRD and Turkiye Sinai Kalkinma Bankasi (the Industrial Development Bank of Turkey or TSKB).
The financing is divided equally between the two lenders. This is the second time Ulusoy Un will benefit from the joint programme between the EBRD and TSKB. The lenders’ partnership aims to improve and simplify access to finance for small and medium-sized enterprises (SMEs) across Turkey.
Earlier this year, the EBRD provided a risk-sharing facility of €50 million, which – together with TSKB resources – will facilitate lending to private industrial companies for a total of €100 million. It follows the successful utilisation of a similar facility signed in 2015, which revealed a growing demand from Turkish companies for TSKB loans backed by the EBRD.
Ulusoy Un produces and sells flour used for the production of bread, biscuits, chapattis and noodles. It exports its wheat flour to 86 countries on five continents, from the Far East to the Caribbean islands, as well as Africa and the Middle East. The company runs two production facilities in Samsun, a city on the Black Sea coast of Turkey, and Çorlu in the north-west of the country. Their combined wheat processing capacity is 900 tonnes per day.
The EBRD is a leading institutional investor in the country and since 2009 has invested over €11.5 billion in almost 300 projects in Turkey. The overwhelming majority of EBRD investments in Turkey are in the private sector.