Established in 1944, Ülker is the market leader, producer and exporter of snacks and other food products in Türkiye with an overall market share of 34% and is also one of the largest in the Middle East and Central Asia. The Company has been listed on Borsa Istanbul (“BIST”) since 1996.  Shares of Ülker are represented as follows:  47.2% of its issued capital is owned by pladis (100.0% of which is owned by Yildiz Uluslararasi Gida Yatirimlari A.S.), 6.7% of its issued capital is owned directly by Yildiz Holding A.S., 6.4% by the Ülker Family members, whereas 39.7% are free float shares under BIST. 

The proposed IFC investment consists of an unsecured senior A-loan of EUR75 million and a subscription of US$65 million to Ülker’s US$-denominated senior unsecured fixed rate Eurobond from IFC’s own account. The IFC Loan will support Ülker’s multi-year corporate investment program which includes: (a) structural improvements for its factories Topkapi and Gebze in in Türkiye to make them earthquake resilient; (b) sustainability targeted investments for resource efficiency and Greenhouse Gas (GHG) emissions reduction in the same two factories in Türkiye and Hamle in Kazakhstan; and (c) maintenance capex for Hamle Company Ltd. LLP (“Hamle”), Ülker’s subsidiary in Kazakhstan. The proceeds from IFC Subscription, on the other hand, will be utilized towards working capital needs of Ülker’s factories located in Topkapi and Gebze in Turkiye, and its subsidiary Hamle`s plant in Kazakhstan.

  The structural strengthening measures will take place in Ülker’s factories in Istanbul and maintenance capex for Hamle will take place in its factories in Kazakhstan. Working capital financing will be utilized in Ülker’s Topkapi and Gebze plants in Türkiye, and its subsidiary Hamle`s plant in Kazakhstan.                                                   

This is a Category B project according to IFC’s 2012 Policy on Environmental and Social Sustainability due to limited and site-specific E&S risks and impacts associated with reinforcement, maintenance, and resource efficiency investments within existing factories. These can be avoided or mitigated by adhering to recognized Good International Industry Practices (GIIPs). Key E&S risks and issues associated with this project include: (i) adequacy of Ülker’s E&S and supply chain management systems, including management of activities associated with the modernization of the factories and sourcing of raw materials; (ii) HR management, including working conditions and terms of employment, non-discrimination, equal opportunity, workers grievance mechanism, and contractors’ labor and occupational health and safety (OHS) management guidelines; (iii) emergency preparedness and response, and life and fire safety; (iv) resource efficiency; (v) air emissions, ambient air quality, odor, noise, solid waste, wastewater, and hazardous material management; (vi) community health and safety, including risks due to transport of products and raw materials; and, (vii) stakeholders’ engagement, including community grievance mechanism and gender-based violence (GBV) sensitive grievances and referrals.