EBRD invests in lira-denominated bond issued by Migros Turkey | Progresiv
The European Bank for Reconstruction and Development has announced a 40 million Turkish lira (6.63 million euros) investment in a 200 million Turkish lira denominated bond issued by Migros Turkey. 
This is the third time that the company has tapped debt capital markets in Turkey and builds on the success of previous bonds in 2018, also backed by the EBRD.
The bond will be listed on Borsa Istanbul and its proceeds will reduce the company’s foreign currency exposure.
In a statement, the EBRD said that its 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'.
It also provided a TRY loan to Migros in December 2018 worth the equivalent of 60 million euros.
'The Bank remains committed to further expanding access to long-term lira funding for Turkish companies, making them more resilient to macro-economic vulnerabilities,' it said.
'Last year, the EBRD increased its support for local currency financing in Turkey to a third of its total investment in the country as an economic slowdown and a dramatic currency depreciation affected many private sector companies.'
Migros has a presence in 81 Turkish provinces, through a network of 2,040 food stores operating under the Migros, M-Jet, 5M and Macrocenter banners. (www.esmmagazine.com)
