Turkey's Ulker secures $455M from syndication loan

By Aysu Bicer

ANKARA (AA) - The European Bank for Reconstruction and Development Bank (EBRD) on Thursday announced that Ulker, a leading biscuit maker in Turkey, has overcome global market turbulence, securing international funding to continue smooth operations.

Confectionery producer Ulker secured a total of $455 million from eight lenders despite market volatility, according to a statement.

It consists of a syndicated facility of $374 million and a parallel loan of €75 million ($81 million) provided by the EBRD, the largest lender among eight international financiers in the transaction.

The bank says it plays key role in helping Turkey’s Ulker to raise new funds.

The new transaction was led by Bank of America as the global coordinator, bookrunner and initially mandated lead arranger, along with Rabobank U.A., and Emirates NBD Capital Limited.

"We are pleased that the EBRD’s participation in the syndication has provided additional comfort to investors, enabling Ülker to raise funds to continue smooth operations," said Arvid Tuerkner, EBRD managing director for Turkey.

One of Turkey’s best-known confectioners, Ulker produces biscuits, cakes, wafers, chocolate bars and chocolate-covered biscuits.

It sells products throughout Turkey and exports to Europe, North America, Africa, Asia and the Middle East.

The new funds will help refinance previous syndicated loan facilities maturing in April 2020 and will be used for strategic investment projects.

The EBRD has previously provided a total of €100 million to support Ulker’s operations in Turkey and Kazakhstan.

The bank is a major investor in Turkey.

Since 2009 it has invested almost €12 billion in various sectors of the country’s economy, with almost all investment in the private sector.