European Bank issued the following announcement on July 24.
Tören Gıda, a family-owned Turkish confectionary manufacturer, will expand production with the help of a US$1 million loan provided jointly by the EBRD and Turkiye Sinai Kalkinma Bankasi (the Industrial Development Bank of Turkey or TSKB).
Based in the south-eastern Turkish city of Gaziantep famous for its gastronomy, Tören Gıda produces wafers, nougat and coconut bars, cream chocolate and other chocolate products, most of which it exports to over 50 countries.
To boost production the company is currently investing in a new, energy-efficient chocolate line, packaging technology with increased automation and a warehouse.
The loan, which is divided 50:50 between the two lenders, will support the investment programme and will finance Tören Gıda’s increased working capital needs such as cocoa, flour, sugar and other ingredients as well as packaging supplies.
Improvements are expected to double Tören Gıda’s capacity to manufacture chocolate products, produce premium chocolate and export to new markets such as the US, Germany and Asia Pacific countries.
Previously, under the EBRD’s Advice for Small Business programme, Tören Gıda benefitted from support from an international consultant for the development of its wafers. A subsequent investment in premium wafers helped the company expand into new markets and boost growth.
Today’s financing is a new investment under a joint programme between the EBRD and TSKB which 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 growing demand from Turkish companies for TSKB loans backed by the EBRD.
The EBRD is a leading institutional investor in the country and has invested over €11 billion in 290 projects in Turkey since 2009. The overwhelming majority of EBRD investments in Turkey are in the private sector.
Original source can be found here.
