EBRD Backs Turkey’s Ulker with $90 Million Investment in Sustainability-Linked Eurobond

EBRD Backs Turkey’s Ulker with $90 Million Investment in Sustainability-Linked Eurobond

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) has invested up to US$ 90 million (€83 million) in Ulker Biskuvi Sanayi’s first sustainability-linked Eurobond, part of a larger US$ 550 million issuance. This funding will help Ulker, a leading Turkish snack brand, refinance its existing Eurobond and achieve its green targets, including significant reductions in greenhouse gas emissions by 2030. Ulker’s CEO, Mete Buyurgan, emphasized the company’s commitment to sustainability and its goal to inspire other businesses. The EBRD has been a significant investor in Türkiye, with over €19.8 billion invested since 2009.

(PRESS RELEASE) LONDON, 2-Aug-2024 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD), a multilateral developmental investment bank,  has invested up to US$ 90 million (€83 million) in a sustainability-linked Eurobond (SLB) issued by Türkiye’s Ulker Biskuvi Sanayi. This investment is part of a larger SLB issuance totaling up to US$ 550 million. Ulker, a leading snack brand in Turkey, will use the proceeds to refinance its existing Eurobond due in 2025 and for general corporate purposes, focusing on reducing greenhouse gas emissions.

This marks Ulker’s first sustainability-linked Eurobond, aiming to reduce Scope 1 and 2 emissions by 42% and Scope 3 emissions by 25% by 2030. EBRD’s Deputy Head of Türkiye, Erdem Yasar, praised Ulker’s leadership in sustainable practices, expressing confidence in the company’s ability to meet its sustainability goals and promote access to debt capital markets for Turkish companies.

Ulker, a publicly traded company with a diverse product portfolio including biscuits, cakes, and chocolate, has a strong sustainability track record. It aims to reduce its environmental footprint through initiatives in logistics, waste and packaging, agriculture, and raw materials.

Ulker’s CEO Mete Buyurgan highlighted the significance of the EBRD’s investment, emphasizing the company’s commitment to sustainability and its ambition to inspire other businesses to adopt green practices. The EBRD previously extended a €75 million sustainability-linked loan to Ulker in 2023.

The EBRD has been a key investor in Türkiye since 2009, investing over €19.8 billion through 447 projects, primarily in the private sector.

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SOURCE: EBRD