Ulker lands USD 90 mn investment from EBRD: The European Bank for Reconstruction and Development (EBRD) is set to invest USD 90 mn (EUR 83 mn) in Turkish multinational snack manufacturer Ulker’s first sustainability-linked Eurobond issuance, according to a statement released on Friday. The investment is part of a larger USD 550 mn issuance. Ulker — which specializes in the production of biscuits, cake, cookies, and chocolate — is Turkey’s largest public food manufacturing company.

About the issuance: Ulker issued a seven-year USD 550 mn Eurobond last month. The transaction was managed by JP Morgan, Merrill Lynch, Emirates NBD, HSBC, and Rabo Securities, and attracted over 100 international investors from different countries. The Eurobond — which will be listed on the Irish main stock exchange Euronext Dublin — is expected to improve Ulker's debt maturity profile and mitigate near-term liquidity risks, S&P Global said.

Where are the funds going? The money will refinance Ulker’s existing USD 600 mn outstanding Eurobonds maturing in October 2025, and for general corporate purposes. Upon completion, the USD 550 mn issuance will help the firm reduce gross debt in the capital structure, S&P said.

Part of Ulker’s green goals: The Turkish firm aims to reduce greenhouse gas emissions by 42% for Scope 1 and 2, and 25% for Scope 3 by the end of the decade, according to the EBRD. The company has identified key areas in the value chain to focus its green initiatives, namely logistics, waste and packaging, agriculture and raw materials, the statement added.

Ulker already has sustainable practices + finance in place: The company has adopted a zero-waste corporate culture, aims for decarbonisation targets, and is transitioning to circular business models. EBRD previously extended a EUR 75 mn sustainability-linked loan to Ulker in 2023.

The firm is active in Egypt + KSA: Ulker acquired three companies in Saudi Arabia in 2017, including biscuit producer and distributor UI Mena-Amir Global, United Biscuits’ Saudi unit IBC, and FMC, according to their website. It also acquired Egypt’s Hi Food in 2016.

MINING INVESTMENTS ARE ALSO ON DECK-

EBRD and the EU launched a joint facility to provide equity investments of up to EUR 100 mn for the exploration of critical and strategic raw materials, according to a statement published last week. The initiative is part of the EBRD’s recently approved EUR 150 mn Junior Mining Framework for equity and quasi-equity investments in early-stage mining companies.

The regional angle: The initiative will include countries covered by the Horizon Europe programme including Tunisia and Turkey, according to the statement.

Ironing out the details: The EBRD is contributing EUR 25 mn, with the EU’s Horizon Europe Programme under the InvestEU umbrella providing similar funds. The facility will then look to mobilize a further EUR 50 mn, according to the statement. It will support the objectives of the EU’s Critical Raw Materials Act and the REPowerEU Plan, ensuring that industrial sectors have the necessary resources while maintaining EU environmental and social standards. The bloc’s Critical Raw Materials Act aims to strengthen EU’s critical raw materials capacities along all stages of the value chain, reduce dependencies, enhance preparedness, and promote supply chain sustainability and circularity.

Scope of work: The facility will focus on early-stage equity investments in junior mining companies across EU member states and EBRD economies outside the EU, the statement added. It will fund responsible exploration activities, adhering to high climate, governance, environmental, and social impact standards, with EBRD’s Paris Agreement alignment and Environmental and Social Policy screening applied to all projects.

IN OTHER EBRD NEWS-

EBRD held multiple talks with Egypt: Senior EBRD officials met with Egyptian Petroleum and Mineral Resources Karim Badawi to explore enhancing cooperation on energy transition and mining, according to a statement released last week. The discussions focused on reducing emissions and decarbonization as part of the bank’s technical support of the country’s low-carbon hydrogen strategy. Financing for renewable energy and energy efficiency projects to support Egypt’s petroleum sector along with environmentally-friendly petrochemical projects were also on the table, along with the provision of technical support to conduct feasibility studies for Egypt’s sustainable aviation fuels production facility. The meeting also discussed cooperation in the mining sector, including a geophysical survey to identify mineral deposits and support for value-added projects.

EBRD met with Egypt’s energy minister: Egypt’s Minister of Electricity and Renewable Energy Mahmoud Esmat met with the EBRD delegation to discuss expanding partnerships in Egypt’s energy sector with the aim of increasing the share of renewables in the energy mix, improving the allocation of natural resources to maximize returns, as well as developing and modernizing the national grid to allow for renewables additions while optimizing electricity distribution, according to a statement published on Friday.

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