EBRD invests 40 million Turkish Liras in retailer Migros bonds

ISTANBUL

The European Bank for Reconstruction and Development (EBRD) announced on Feb. 26 that it has invested 40 million Turkish Liras ($ 7.54 million) in a 200 million lira bond issued by Turkey’s leading supermarket operator, Migros.

This is the third time Migros has tapped debt capital markets in Turkey and builds on the success of previous bonds in 2018, also backed by the EBRD, the development bank said in a statement.

The new lira-denominated bond will be listed on Borsa Istanbul and its proceeds will reduce the company’s foreign currency exposure.

The EBRD’s support for Migros’ bonds promotes debt capital markets as an alternative source of financing at a time when bank lending conditions are tightening in Turkey, the statement added.

In December 2018, the EBRD also provided a lira loan to Migros, worth the equivalent of 60 million euros.

Migros operates in 81 Turkish provinces, through a network of 2,040 food retail stores under the Migros, M-Jet, 5M and Macrocenter banners.

The bank said it remains committed to further expanding access to long-term lira funding for Turkish companies, making them more resilient to macro-economic vulnerabilities.

The EBRD is a leading institutional investor in Turkey and has invested over 11 billion euros in 283 projects in Turkey since 2009, with a focus on investment in sustainable energy, improving infrastructure, strengthening the competitiveness of the private sector, deepening capital and local currency markets, and promoting regional and youth inclusion and gender equality.