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Five years after the beginning of its operations in Turkey, the EBRD has signed its first deal with a Turkish primary agriculture production company. The Bank, which believes Turkish agribusiness is one of the higher-growth potential sectors in the country, is lending up to €30 million to Keskinoglu, an egg and poultry producer from Akhisar, Manisa, located in south-west Turkey.
Keskinoglu is one of the fastest-growing Turkish poultry producers and is still family-owned. With Turkey becoming an increasingly important regional exporter of poultry and eggs, the company is in a good position to expand its production.
The loan will support the company's capacity expansion in egg production and investments in new co-generation units. Investments include a new cold storage warehouse, new egg production and breeding facilities, a manure drying facility and expansion of the existing hatchery, egg pasteurisation and incubation facilities. This expansion programme will help the company to increase its egg and poultry production. The EBRD and Keskinoglu are also planning to work together on promoting EU-compliant animal welfare production techniques in the Turkish poultry industry.
"This loan is the first deal with an international financial institution for Keskinoglu, and the first primary agriculture deal for the EBRD in Turkey. The EBRD believes that agribusiness is one of the most promising sectors in Turkey, and it has the potential to grow and become more effective. Better access to finance and more investment is very important, so we are hoping this deal will show the way to other investors," said Mike Davey, EBRD's Director for Turkey.
Since the beginning of its operations in Turkey in 2008, the EBRD has invested over €2.5 billion in over 76 projects.
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