€45 million loan to increase production
The European Bank for Reconstruction and Development (EBRD) is boosting Turkey’s agribusiness with a €45 million loan to Reka Bitkisel Yaglar San. ve Tic. A.S., a fast-growing local oilseed processing company. The EBRD loan, of which €20 million is syndicated to FMO N.V., will help Reka refinance existing loans and buy new equipment to increase production. The funds will also enable the company to work with larger numbers of farmers supplying oilseeds.With its state-of-the-art plant located in the Tekirdağ province in north-eastern Turkey, where most of the country’s sunflower and rapeseed is cultivated, Reka sources most of its seeds locally and seeks closer ties with farmers.The company, established.XX at EBRD said: “Our finance and know-how will help this young company grow and meet the highest European quality standards as well as expand farmers’ access to the market.”
Supporting agribusiness companies such as Reka outside large metropolitan areas, where financing remains scarce, is a priority for the EBRD in Turkey. Agribusiness is one of the most important sectors of Turkish economy, contributing by 7.4 per cent to the country’s GDP and comprising well over 20 per cent of the active labour force.The EBRD started investing in Turkey in 2009 and currently operates from offices in Istanbul, Ankara and Gaziantep. In just six years the Bank has invested over €5.5 billion in Turkey through more than 150 projects in infrastructure, energy, agribusiness, industry and finance. It has also mobilized over €12 billion for ventures from other sources of financing. In 2014 Turkey became the leading recipient country of the EBRD with new investments worth €1.4 billion.