European bank loans €32M to Turkish snacks firm

By Tuba Sahin

ANAKARA (AA) - The European Bank for Reconstruction and Development (EBRD) is providing €32 million (some $39.7 million) finance to a Turkish snack firm for a new production facility in northwestern Eskisehir province, the bank said on Tuesday.

According to a statement from the EBRD, the finance agreement with dried fruits, nuts, seeds and popcorn producer Peyman, owned by international private equity fund Bridgepoint, will enable the company to expand its business.

"The EBRD loan, with €10 million ($12.43M) syndicated to FMO, the Dutch Development Bank, will finance the investment program," the bank said.

The new 59,000 meter square plant will become operational in the first half of this year and double the company’s production capacity to 45,000 tonnes, the European bank said.

"The plant’s modern layout and state-of-the-art equipment will help increase efficiency and save costs, freeing up resources for new products such as snack bars and popcorn," it said.

The new facility will also help Peyman increase its exports to the EU by applying high standards and the best available techniques, it said.

"The EBRD loan will also finance Peyman’s day-to-day operations such as buying fruits, nuts and seeds from local farmers, storing, processing, drying and packaging the produce," it said.

The EBRD is pleased to be part of the company's growth and transformation from a small regional player into an internationally-recognized brand, the bank's Managing Director for Turkey, Arvid Tuerkner, said.

"We applaud the company’s commitment to working more closely with Turkish farmers and helping them increase their productivity and incomes. We believe this will help strengthen rural communities and boost the economies of the country’s remote regions," Tuerkner said.

Tuncer Akgun, chairman of the board of directors at Peyman, said the bank's support reflects the confidence in Turkey, the industry and the company.

"The loan will help us sustain our continuous growth and strengthen our position as we work to become a global Turkish brand,” Akgun said.

According to the statment, Peyman exports its products to more than 40 countries, including the U.S., Russia, the Middle Eastern countries, China and Australia along with operating in the local market.

Bridgepoint acquired shares of Payman, which was established in 1995, from its founders and Esas Holding in 2016.

According to the bank, it has invested €10 billion ($12.43B) in varies sectors since 2009 in Turkey, which is a top destination for the bank’s finance.

"In 2017 alone, the EBRD invested €1.6 billion [$1.99B] in 51 projects in Turkey. Almost a third of this financing was provided in Turkish lira." the bank said.