Turkish confectioner Ülker receives $455m financing package

Turkish confectionery producer Ülker Bisküvi Sanayi has secured a $455m financing package to expand its business in the domestic and international markets.

The confectioner raised the funds with a three-year maturity from eight lenders.

The financing package consists of $374m from a syndicated facility and a parallel loan of €75m from EBRD, which is the largest lender among the eight international financiers in the transaction.

EBRD Turkey managing director Arvid Tuerkner said: “Despite the challenges caused by the coronavirus, the EBRD remains open for business. Working remotely, we stand by our clients and are committed to supporting them in the most difficult times.

“We are pleased that the EBRD’s participation in this transaction has provided additional comfort to investors, enabling Ülker to raise funds to continue smooth operations and pursue new growth opportunities at home and abroad.”

In this transaction, the Bank of America served as the global coordinator, bookrunner and also initially mandated lead arranger, along with Rabobank and Emirates NBD Capital.

Ülker is engaged in the production of biscuits, cakes, wafers, chocolate bars and chocolate-covered biscuits. Its products are distributed across Turkey and are exported to Europe, North America, Africa, Asia and the Middle East.

The confectioner will use the new funds to make a strategic investment in projects and refinance its previous syndicated loan facilities that are maturing this month.

Last month, EBRD agreed to offer funding to support the Moroccan olive oil sector.

As part of this initiative, EBRD committed a loan of up to MAD55m (€5m) to Al Dahra Morocco Factories (ADFAC) and Al Dahra Morocco (ADMO), the subsidiaries of Al Dahra Holding.