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The European Bank for Reconstruction and Development (EBRD) is investing up to US$ 90 million (€83 million) in a sustainability-linked Eurobond (SLB) issuance by Türkiye’s Ulker Biskuvi Sanayi, one of the country’s leading snack brands. The SLB is part of a larger issuance totalling up to US$ 550 million.
This is the first sustainability-linked Eurobond issued by Ulker. The proceeds from the issuance will be used to refinance the company’s existing Eurobond due in 2025 and for general corporate purposes, enabling Ulker to meet its green targets of reducing Scope 1 and 2 greenhouse gas emissions by 42 per cent by 2030, and Scope 3 emissions by 25 per cent by 2030.
Erdem Yasar, the EBRD’s Deputy Head of Türkiye, reflected on the EBRD’s partnership with Ulker, stating: “Every industry requires a visionary leader in sustainable practices, and we believe Ulker’s initiatives will set a benchmark for all businesses, while promoting access to debt capital markets for Turkish companies. We are confident that, through our continued partnership, Ulker will rapidly advance towards its sustainability objectives.”
Ulker is a long-established domestic brand with a diverse product portfolio that includes biscuits, cakes and chocolate. It is a publicly traded company, with majority shares belonging to Pladis Foods Limited, which is owned by Yildiz Holding.
The company already has a strong track record in sustainability; it embraces a zero-waste corporate culture, sets science-based decarbonisation targets and is transitioning to more circular business models.
Ulker’s Chief Executive Officer Mete Buyurgan commented on the investment: “This investment by the EBRD is a significant milestone for us, highlighting our first sustainability-linked bond issuance and reinforcing our commitment to sustainability. Our goal is to not only reduce our environmental footprint but also inspire other businesses to adopt green practices. With this support, we are confident we can meet our ambitious targets and drive positive change within our industry.”
To reduce emissions in the value chain and strengthen its green credentials, the company has identified several areas to focus on, namely logistics, waste and packaging, agriculture and raw materials.
The Bank previously extended a €75 million sustainability-linked loan to the company in 2023, as part of a larger refinancing package provided by an existing syndication facility.
The EBRD is one of Türkiye’s key investors, with more than €19.8 billion invested through 447 projects and trade finance limits since 2009, most of it in the private sector. |
