ARMADA GIDA TİCARET SANAYİ ANONİM ŞİRKETİ
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Armada Foods is one of the largest pulses processors in Türkiye, exporting various types of packaged pulses to Europe, the Middle East, and Asia. Its business model entails managing a supply chain for various products, such as lentils, bulgur, chickpeas, beans and rice. This includes origination, storage, processing, sieving, packaging, and distribution of the final products to the domestic and international markets through B2B and B2C channels. The processing and storage facilities of Armada Foods are located in Mersin, an important port city of Türkiye on the Mediterranean coast as well as a logistical hub for the global pulses market. Armada Foods has been a client of FMO since 2022, when FMO provided a long-term facility of USD 25 million for financing capital expenditures (CAPEX) and working capital (WC) requirements of the newly constructed state-of-the art production facility in Mersin.
What is our funding objective?
FMO’s USD 15 million, supports Armada Foods in the additional capex and WC needs for the new production units, located in this new production facility, which will be focusing on high value-added food products.
Why do we fund this investment?
By supporting Armada Foods, FMO supports an important agribusiness player that has linkages in the upstream agricultural sector in Türkiye. Specifically, Armada produces and exports volumes of affordable nutritious food products, such as super cereals and pulses, for the Middle East and Africa via international aid organizations. In doing so, it contributes to the food security in these regions. Armada also increases economic activity and provides for more jobs in rural Türkiye and generates hard currency via exports. Armada further realizes energy efficiencies through usage of the best available technology in their state-of-the-art production facilities.
What is the Environmental and Social categorization rationale?
Armada’s risk category is B. This is based on limited and site-specific environmental and social risks and impacts at the processing plants and supply chain. These risks and impacts can be avoided or mitigated by incorporating Good International Industry Practices, including World Bank Group (WBG) Environmental, Health and Safety (EHS) General Guidelines for the operated plants and Good Agricultural Practice support in the supply chain for pulses. The following IFC’s Performance Standards (PSs) are applicable for this investment: PS1: Assessment and Management of Environmental and Social Risks and Impacts, PS2: Labor and Working Conditions, PS3: Resource Efficiency and Pollution Prevention and PS4: Community Health, Safety, and Security working with the supply chain. E&S risks are mostly related to occupational health and safety related to industrial processing activities which are offset by high Turkish environmental, health and safety standards and regulations well applied and enforced in Türkiye. FMO will periodically review the project’s ongoing compliance with the Performance Standards.
More investments
| Date | Total FMO financing |
|---|---|
| 7/28/2022 | USD 10.00 MLN |
| 7/28/2022 | USD 5.00 MLN |
| 7/28/2022 | USD 10.00 MLN |
- Region
- Europe & Central Asia
- Country
- Türkiye
- Sector
- Agribusiness, Food & Water
- Publication date
- 3/25/2024
- Effective date
- 6/5/2024
- Total FMO financing
- USD 15.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B