EBRD provides €20M finance to Turkish agribusiness firm

By Muhammed Ali Gurtas

ANKARA (AA) - The European Bank for Reconstruction and Development (EBRD) is providing €20 million (some $21.35 million) finance to a Turkish agribusiness company for its new plant investment, the EBRD said on Monday.

The EBRD said the finance agreement with pulses and rice producer Yayla Agro, a family-owned company headquartered in the capital Ankara, would increase the company's revenues from value-added products.

"Yayla Agro runs plants with an overall capacity of 820,000 tons per year. The company exports to more than 45 countries and has almost tripled its sales over the past three years," the bank said, adding: "It is now planning to increase its share of sales in value-added products. As part of this strategy, Yayla Agro is setting up a new plant for organic ready-to-eat products."

The EBRD also noted that a €6 million (around $6.4 million) portion of the total loan amount would be extended by the Taiwan International Cooperation and Development Fund (TaiwanICDF) which is in charge of Taipei China’s overseas development program.

"It is the first EBRD co-financing with TaiwanICDF in Turkey’s corporate sector and part of the Bank’s efforts to attract new institutional investors to the country," the bank said. "With the EBRD’s help the company will also further improve its corporate governance to continue its transformation from a family business to a modern corporation."

"The nature of Yayla Agro’s business requires the company to be able to buy a sufficient quantity of legumes at harvest and throughout the year," said Jean-Patrick Marquet, EBRD managing director for Turkey.

"The Bank’s loan will provide long-term financing to support the company’s day-to-day operations, refinance existing loans and help it venture into the new ready-to-eat niche which will help Yayla Agro conquer new markets," he said.

Hasan Gumus, chairman of the Yayla Agro Board of Directors, pointed out the company's efforts in responding the consumption habits of customers.

"We have customers in national and local supermarkets, discount markets, and through home-based shopping channels and dealers in local and international markets. We work hard to add value by improving our healthy, delicious, value-added product range every day," Gumus said.

The EBRD, which operates from three offices in the cities of Istanbul, Ankara, Gaziantep, has been investing in the country since 2009.

According to the bank, it has invested over €9 billion (approximately $9.6 billion) through more than 220 projects during the past eight years in Turkey, which is a top destination for the bank’s finance.