The EBRD is making a €1.4 million investment in Meykar, one of Turkey's leading private manufacturers and distributors of frozen beverages to expand the company's capacities and product range, EBRD reported
The two-tranche financing is in the form of a convertible loan of €0.7 million that has already been disbursed and a planned €0.7 million equity injection that will come into effect as the company implements its business development plan.
The EBRD's funds will be used to finance the purchase and installation of new equipment lines. The improvements will increase Meykar's production capacity and distribution network across Turkey.
"We are very pleased to help Meykar's management team with this transaction, which underlines our commitment to further develop Turkey's fast-growing small and medium-sized private business sector. The Bank is an early investor in the company and we will continue providing our support as the company continues its growth," Michael Davey, EBRD Director for Turkey, said.
Meykar has operated on the Turkish market since 1997, specialising in producing frozen natural juice-based and non-carbonated beverages and smoothies. Meykar owns Buzlaş, Granita and Frio brands. The company has developed an extensive distribution network which covers schools, hotel chains, supermarkets and shopping centres throughout Turkey and other countries.
"We are honoured to partner with such a prestigious institution as the EBRD. Over the past few years, our commitment to innovation has strengthened our leadership in the frozen beverages sector. With the help of the EBRD's investment, we will bring new high-quality products to Meykar's customers," Baran Fidanboy, Meykar's CEO, said.
The EBRD's investment in Meykar was arranged under the bilateral EBRD-Italy Local Enterprise Facility, which was established to support real economies in Turkey, Albania, Bosnia-Herzegovina, Croatia, FYR Macedonia, Montenegro and Serbia by providing financing to small and medium-sized local enterprises in these countries.
In Turkey, the EBRD focuses on renewable and sustainable energy, small business development in the regions, agribusiness, municipal, environment and other infrastructure, and privatization. Since the beginning of its operations in Turkey in 2009, the EBRD has committed nearly €800 million in about 30 projects with a total project value of around €2 billion, with 100 per cent of the projects being investments into the development of the private sector.