EBRD to support Tiryaki Agro in Turkey

The European Bank for Reconstruction and Development (EBRD) has agreed to provide a loan of $48m to the Turkish agricultural products exporter Tiryaki Agro, supporting its business expansion plans.

Funding will be provided in two financing packages. The first will include a loan of $28m, part of a comprehensive financing of $230m offered by a consortium of lenders led by ABN Amro.

The consortium is composed of financial institutions including the Dutch development bank FMO, Rabobank, HSBC, Société Générale, Amsterdam Trade Bank, Credit Suisse, British Arab Commercial Bank and Gazprombank.

The second financing package includes a loan of $20m from the EBRD and will be part of the $65m facility that will be arranged by FMO with the contributions from Proparco, an investment subsidiary of the French Development Agency.

The funds will be used by Tiryaki Agro to support its day-to-day operations such as processing, storing and trading pulses, grains, feed, oilseeds, corn and nuts.

Tiryaki Agro also plans to expand its footprint into new markets, including North America and Europe, as well as strengthen its focus on organic products.

Since 2012, EBRD has held shares in Tiryaki Agro and is said to have provided $46.5m in financing to the company.

EBRD is reported to be one of the major investors in Turkey, and since 2009 the bank reportedly invested €10bn in various sectors of the Turkish economy. Last year, EBRD invested €1.6bn in 51 projects in the country.

Established in 1980 in Anatolia, Tiryaki Agro is a family business, which operates as an agricultural commodity supply chain manager in Turkey.