EBRD loan to A101 to make Turkish retail more sustainable

• EBRD loan to Turkish discount retailer A101 aims to boost green credentials
• A101 committed to sustainable strategic growth and resource efficiency
• Project to empower retail workforce, especially women, with training

The European Bank for Reconstruction and Development (EBRD) is providing an A/B loan of US$ 200 million to one of Türkiye 's largest discount retailers, A101, to support the company's green aspirations.

The A loan will consist of US$ 100 million of EBRD financing, while the US$ 100 million B loan will be syndicated to commercial lenders. US$ 100 million of the total amount will be committed, with the EBRD providing US$ 82 million and Green for Growth Fund the remaining US$ 18 million.

The loan will enable A101 to implement a medium-term capex programme that includes new store and warehouse openings across the country, the refurbishment of existing stores with climate mitigation measures, and the installation of solar panels for internal energy consumption.

A101 is the largest retail chain in Türkiye, with over 13,600 stores in cities across the country. It is owned by Turgut Aydin Holding Company.

Through the loan, A101 will strengthen its green credentials by reducing the energy consumption and carbon emissions of its stores, installing solar energy panels and introducing resource efficiency measures.

Türkiye's retail sector, which employs 12 per cent of the workforce, faces significant challenges, especially in the country's earthquake-affected region, where businesses have limited opportunities and are undergoing workforce issues, hampering the return to previous business volumes.

A101 will respond to these challenges by delivering two large training programmes: one for retail employees in the earthquake-affected region to boost technical skills and workforce recovery, and another for staff nationwide, including retail and warehouse workers. Notably, 60 per cent of new recruits participating in the training programmes will be women, in order to enhance female participation in the workforce, equip women with new skills and strengthen their economic empowerment.

Wojtek Boniaszczuk, the EBRD's Regional Head for Food and Agribusiness, said: "We are pleased to be working with A101 on this unique project, which invests in Türkiye's future on significant fronts. A101's steps towards more environmentally conscious operations will be exemplary for the retail sector.

"We are also very proud of the human capital aspect of this investment, which aims to bolster inclusion and provide new skills to the workforce, particularly in the earthquake-affected region. This should encourage the workforce to return the region and help it to regain economic activity at pre-earthquake levels."

Aydin Group Chief Financial Officer Osman Yilmaz said: "We are pleased with this strategic partnership with the EBRD, which will strengthen our position in the sector and accelerate our investments in sustainable retail operations. A101 is committed to driving innovation and sustainability in its sector. Collaboration with the EBRD will not only increase our financial stability, but will also strengthen our workforce and ecosystem. We are dedicated to promoting female participation in business life and providing skills development opportunities."

The EBRD is among Türkiye's key investors, with more than €20 billion invested through 455 projects and trade finance limits since 2009, most of it in the private sector.

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