Project detail - KILIC DENIZ URUNLERI URETIMI IHRACA

Who is our prospective customer?

Kılıç Deniz started its operations in 1993 and has become a major aquaculture player in Turkey, operating a fully integrated value chain with offshore and inland facilities. Aquaculture operations of Kılıç Deniz are organized in four business segments: (i) production of seabass, seabream and meagre; (ii) production of trout and salmon trout; (iii) wild-catch and ranching of tuna and (iv) juvenile fish production and sales to the other aquaculture producers.

What is our funding objective?

FMO intends to arrange a new 7-year Syndicated Term Loan facility of up to EUR 50 million with potential participants from other international development institutions. Up to EUR 25 million of the financing will be provided by FMO. The funds will be used to finance capex investments in Turkey for growth including new marine fish farms for seabass, seabream and salmon trout production and processing and packaging facility, as well as, increasing working capital requirements of the company in relation to the expansion of its aquaculture operations.

Why do we want to fund this investment?

FMO wishes to support a leading aquaculture player of Turkey which is engaged in growing and producing sustainable certified fish. The transaction will support i) creating new jobs in rural areas of Turkey and ii) generating hard currency for Turkey via its seafood exports to 60 countries. With this transaction, FMO will contribute to the production and distribution of the fish, as a nutritious and climate-smart animal protein, the Company’s sustainable practices as certified via Global GAP and ASC and its active role in the EU’s 4-year climate adaptation evaluation program, employment in the rural and coastal provinces of Turkey and hard currency generation, the continuous development of the aquaculture sector through innovation, sustainable management and efficient use of resources in its operations and mobilizing DFIs, funds and commercial investors.

What is the Environmental and Social categorization rationale?

E&S risks are categorized as Category B+ mainly due to fish facilities expansion, which must be managed in a manner consistent with the following IFC performance standards: PS 2 Labor and working conditions, PS 3 Resource Efficiency and Pollution Prevention, PS 4 Community Health, Safety and Security. Client manages its environmental and biodiversity risks according to international standards and PS 1 Assessment and Management of Environmental and Social Risks, and PS 6 Biodiversity Conservation and Sustainable Management of Living Natural Resources. PS 5 Land Acquisition and Involuntary Resettlement does not apply because client’s operations are established in industrial zones, and farm cages 1,000m away from coastal areas in areas assigned and approved by the local government. PS 7 Indigenous People and PS 8 Cultural Heritage do not apply because no local nor native communities are close to the company’s operations.

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Date	Total FMO financing
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