Kılıç Deniz gets EUR 80 million loan to support expansion plan
Kılıç Deniz Urunleri has received a EUR 80 million (USD 95.5 million) syndicated lending facility from two European development banks.
Dutch development bank FMO has committed EUR 65 million (USD 77.6 million) and French development finance institution Proparco has chipped in EUR 15 million (USD 17.9 million) to the facility, which will be used to support Kılıç’s expansion plans in Turkey.
Bodrum, Muğla, Turkey-based Kılıç Deniz Urunleri one of Turkey’s leading aquaculture and seafood companies, growing sea bass, sea bream, and rainbow trout, with USD 175 million (EUR 146.7 million) in exports to more than 60 countries in 2018. It operates a fully integrated value chain, from fingerling and aquafeed production to offshore and inland aquaculture facilities, to processing and distribution. It holds certifications from the Aquaculture Stewardship Council, GlobalG.A.P., and SEDEX
“With the current economic climate in Turkey which is limiting the liquidity companies can receive from local banks, many enterprises have turned to other means for support. Kılıç Deniz chose to partner with FMO, making it the first time the company is working with an international development finance institution,” FMO said in a press release.
The new syndicated facility will replace a previous EUR 50 million (USD 59.7 million) term loan facility issued by FMO to Kılıç Deniz in 2019.
“We are pleased to further strengthen our commitment to Kılıç Deniz, a producer of healthy and increasingly important marine proteins, while embedding best industry practices in its business operations,” FMO Director of Food and Water Agribusiness Pieternel Boogaard said. “Kılıç Deniz’s impact and success contribute to a more sustainable aquaculture industry worldwide. We are proud to be the first development finance institution partnering with Kılıç Deniz and to arrange this syndicated facility along with Proparco.”
According to FMO and Proparco, the facility contributes significantly five of the United Nations Sustainable Development Goals, including taking climate action, furthering responsible consumption and production of food, zero hunger, decent work, and economic development.
“We are proud of our important role in producing very valuable animal protein for the world,” Kılıç Deniz CEO Hakan Uyanık said. “Our biggest ambition is to further grow production of Mediterranean fish and rainbow trout to make it available for more people on earth and to be perfect in terms of environment and social sustainability in the process. The FMO-Proparco syndication helps us not only in financial terms but also with an immense support towards improving and investing on environment and social action plan. We are truly grateful for that.”
Photo courtesy of FMO