EBRD loans $7.5M to Turkish confectionery producer

The European Bank for Reconstruction and Development (EBRD) provided $7.5 million to the Turkish confectionery producer Kervan Group, the bank said on Tuesday.

Kervan Group will use the five-year loan to expand operations as it works to meet growing demand for its products from consumers in Turkey and abroad.

"Investments include the purchase of new equipment, a fast-track jelly moulding line to help increase production in its factory in Manisa, western Turkey," the EBRD said in a statement.

Pointing new markets in the Balkans and Eastern Europe, the bank noted that it will provide Kervan Group with business advice on potential expansion.

"The bank will also help the company enhance its corporate governance and increase the share of locally sourced raw material, strengthening its relationship with local suppliers," the EBRD said.

Kervan Group, established in 1995, is the country's leading exporter of jelly products with its three production facilities in Turkey.

Since 2009, the EBRD has invested nearly €11 billion (approximately $13 billion) in Turkey -- a top destination for the bank's finance -- through more than 250 projects over the past nine years in Turkey.

In 2017 alone, the EBRD invested €1.6 billion (some $1.8 billion) in 51 projects in the country -- nearly a third of this financing was provided in Turkish lira.