TSKB-Financed Loan Enables Alarko Tarım to Achieve a First in Turkey

TSKB and Alarko Tarım Grubu signed a credit agreement worth EUR 80 million under the scope of the first project financing provided in the agricultural sector in Turkey, with funding from the International Bank for Reconstruction and Development (IBRD), an institution of the World Bank.

The investment in Turkey's largest modern greenhouse project, which will be implemented in Eskişehir across 850 hectares, aims to increase access to sustainable and safe food.

Alarko Tarım Grubu signed a credit agreement worth EUR 80 million with TSKB (Industrial Development Bank of Turkey) for Turkey's largest modern greenhouse project to be implemented in Eskişehir, under project financing with the International Bank for Reconstruction and Development (IBRD), an institution of the World Bank, as the funding source. Nata Tarım Üretim ve Ticaret A.Ş., a subsidiary of Alarko Tarım Grubu, will carry out the investment in a technology-based greenhouse powered by geothermal energy across 850 hectares, with a 12-year credit facility featuring a 2-year grace period on principal repayment. This is the first project financing provided in the agricultural sector in Turkey.

Noting that the credit agreement signed with TSKB, Turkey's pioneer institution in sustainable banking, will make a significant contribution to Alarko Tarım Grubu's goal of entering the world's top 10 in geothermal greenhouse farming within 5 years, Ümit N. Yıldız, Chairman of the Executive Board of Alarko Şirketler Topluluğu, stated: "Our investments in modern greenhouses form the locomotive of our vision to operate comprehensively across agriculture. Alarko Tarım Grubu currently ranks among Turkey's largest modern greenhouse operators through investments implemented in Afyonkarahisar, Denizli and Eskişehir.

The investment we plan in Eskişehir, in addition to being Turkey's largest modern greenhouse project, will be among the best examples of sustainable agriculture. The provision of financing at the level of EUR 80 million for our project with the valuable support of TSKB is significant in reflecting the contribution of the investment we will carry out to local development and the confidence in Alarko's identity as a responsible investor."

Commenting on the agreement, TSKB General Manager Murat Bilgiç said: "As TSKB, Turkey's first and only privately-capitalized development and investment bank, which is celebrating its 75th anniversary this year, we have been providing financing and advisory support to Turkey's strategic development areas since our establishment. With our ecosystem-repair banking approach, we determine our focus areas based on benefiting today and our sustainable future. We are pleased with the partnership we have established with Alarko Tarım under the scope of the Eskişehir modern greenhouse project, which will be a first in Turkey in the field of sustainable agriculture.

We believe that sustainable agricultural practices conducted in an environmentally, socially and economically responsible manner will create meaningful differences in many areas, from preserving ecosystem balance to efficient use of natural resources, from food security to product quality. I wish this valuable partnership to be beneficial for Eskişehir and our country; and to serve as an example for the spread of sustainable agricultural practices throughout Turkey," he noted.

To provide employment for over 800 people
The modern greenhouse to be implemented in Eskişehir together with Nata Tarım, a subsidiary of Alarko Tarım Grubu that carries out modern greenhouse farming activities, will be built across 850 hectares. The project aims to provide direct employment for over 800 people, with 75 percent of employees being women.

In the project where good agricultural practices will be implemented, the greenhouse areas will be heated cyclically with geothermal energy, a renewable energy source, and innovative technologies will be utilized at the highest level for efficient use of water resources.