Project detail - Ulusoy Un Sanayi ve Ticaret AS

Ulusoy Un Sanayi ve Ticaret AS

Status: Approved investment
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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

Ulusoy Un Sanayi ve Ticaret A.Ş. (“Ulusoy”) is one of the largest wheat-flour milling companies in Turkey, milling, and selling flour domestically and for export to Middle East, Africa, and Asia. The company purchases wheat in Turkey and from abroad in Black Sea region and then processes it into flour in its milling facilities in the cities of Samsun and Çorlu/Tekirdağ. The company is also engaged in trading of wheat and other grains in domestic and international markets. Ulusoy Un is an existing client of FMO since 2018 when FMO has provided a long-term facility of USD 18 mln to the Company for financing of its new state-of-the-art flour mill in Samsun.

What is our funding objective?

Ulusoy has signed a termsheet with Moms Kitchen International S.a.r.l for the acquisition of Söke Degirmencilik San. ve Tic. A.S. (“Söke”), a local flour milling company, producing, and marketing packaged flour and specialty products under a recognisable consumer brand named ‘Söke Un’. FMO is providing a new long-term facility of up to USD 25 mln to Ulusoy to finance this acquisition and the acquired operations’ working capital requirements.

Why do we fund this investment?

FMO’s funding supports business growth of Ulusoy, by further improving flour milling capacity and local marketing and distribution network, enabling the company to vertically integrate towards branded consumer channels. The transaction contributes to tackling the commitment to zero hunger (processing and distributing flour as a staple food and contributes to food security in less developed markets in Middle East, Africa and Asia) and decent work & economic growth (employment opportunities in rural provinces of Turkey).

What is the Environmental and Social categorization rationale?

E&S risk categorisation is “B” (medium to low). IFC PS 1-4 are triggered. The company has several ISO certifications that serve as a backbone of its environmental and social management system. Company sources from highly mechanized producers of grains from Eastern Europe and Turkey. IFC PS 5-8 are not triggered, i.e., no acquisition of land or resettlement is in place, flour milling, and distribution activities of the company do not have a negative impact on the natural habitats, local population etc., no indigenous people were involved/affected by the operations of the company and/or FMO financing, and operations of the company are not located in any cultural heritage sites.

More investments

Date Total FMO financing
4/22/2024 EUR 0.02 MLN
12/15/2023 USD 12.00 MLN
12/13/2021 USD 10.00 MLN
9/10/2018 USD 18.00 MLN
Region
Europe & Central Asia
Country
Türkiye
Sector
Agribusiness, Food & Water
Publication date
10/7/2021
Effective date
12/13/2021
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