European bank loans $67M to Turkey’s key fruit producer

The European Bank for Reconstruction and Development (EBRD) on Tuesday announced that it is providing a €60 million loan (nearly $67 million) to Anadolu Etap, the leading fruit producer in the country.

"Half of the loan has been syndicated to the Dutch development bank FMO under the EBRD’s structure," according to a statement.

Anadolu Etap supplies fruits and produces fruit puree, concentrates and juices that are sold throughout Turkey and 60 other countries.

The new financing will help the company ensure continuous growth despite the uncertainty caused by the pandemic.

"A loan maturity of six years provides greater flexibility and resources to fund capital needs as demand increases both at home and abroad," the statement said.

"There is no doubt about the severity of the impact of the coronavirus outbreak on agriculture in Turkey and elsewhere," noted Arvid Tuerkner, EBRD’s managing director for Turkey.

By providing finance to Anadolu Etap, he added, the EBRD is also supporting local farmers and livelihoods in rural areas.

Anadolu Etap will also join forces with educational institutions to improve the transfer of knowledge and skills to farmers and provide greater training and employment opportunities to Syrian refugees.

"The loan from the EBRD and FMO is an indication of the lenders’ trust in Turkey, our company and in the Turkish agriculture sector," Bahadir Acik, CEO of Anadolu Etap said.

The EBRD is a major investor in Turkey.

Since 2009, it has invested €12.4 billion through 311 projects in various sectors of the country’s economy, with almost all investment in the private sector.

The EBRD’s €7 billion portfolio in Turkey is the largest among the 38 economies where the Bank invests.