Dutch and French bankers commit $82.5m to boost zero hunger SDG in Middle East
Founded in 1965 as a small family-owned enterprise, Tirayaki Agro has grown into one of the largest agribusiness supply chain managers in the MENA region, processing 11,000 tons of agri-products, such as grains, oilseeds, pulses and nuts, in its facilities daily.
It is also a significant contributor to food security, distributing around three million tons of agri-commodities annually – including staples like flour, rice, lentils and wheat – to its core markets in Turkey, the Middle East and Africa (MENA), as well as through the UN’s World Food Programme.
The capital will also be used to contribute to work and economic development, both through employment in rural areas and through hard currency generation via its export flows. While Tiryaki Agro’s head office is in Istanbul, the majority of its 1,500-strong workforce is employed in smaller cities and the more rural provinces across Turkey. It is expected the resulting scale up from the $82.5m facility will create more employment for locals.
“Having the role of leading agri supply chain manager, Tiryaki Agro plays an important role for the sustainable food supply in Turkey, the Middle East and Africa,” said Tiryaki Agro CEO Suleyman Tirakioglu.
The current economic climate in Turkey limits the long-term liquidity that companies can receive from local or international commercial banks, however, FMO and Proparco have been supporting Tiryaki Agro since 2012. The new facility – made up of $62.5m from FMO and $20m from Proparco – will be used to refinance the DFIs’ existing loan with Tiryaki Agro, while also providing an impact through no less than three SDGs.
DFIs are specialised development banks or subsidiaries set up to support private sector development in developing countries.
Both DFIs work to strengthen the contribution of private players to the achievement of the SDGs by providing funding and support to companies who activities contribute to creating jobs and decent incomes, providing essential goods and services and combating climate change.
Supporting a very fragile food security
“Our valuable financial partners contributed a lot in the past to achieve our short and long-term goals with their support. Not only did they provide financial support, they also supported Tiryaki Agro to improve its risk management and environmental & social policies,” said Tirakioglu.
Pieternel Boogaard, director of Agribusiness, Food, Water at FMO, added, “We are pleased to further strengthen our commitment to Tiryaki Agro, as a longstanding partner of FMO, and an important regional agribusiness supply chain manager. By arranging this facility with our fellow DFI, FMO confirmed its commitment to support a successful Turkish agribusiness player who contributes to the food security in its region.”
Denis Sireyjol, head of Manufacturing, Agribusiness & Services at Proparco, added: “With FMO, we are proud to support since 2012 Tiryaki Agro, Turkey’s leading processor of agricultural products. With this new facility, Tiryaki Agro will ensure the maintenance of food supply chains, mainly in the Middle East and more particularly in Iraq, to reinforce a still very fragile food security.”
