Sullivan & Worcester recently provided legal counsel to the European Bank for Reconstruction and Development (EBRD) on two significant supply chain finance (SCF) initiatives in Türkiye and Romania. These initiatives were designed to offer financial support for regional economic recovery efforts in the wake of various challenges.
The first initiative involved Sullivan supporting EBRD’s unfunded risk participation in Akbank’s SCF program, which aimed to benefit Sok, a prominent Turkish retailer. This program was intended to provide over 100 suppliers, primarily small and medium-sized enterprises (SMEs) located in cities affected by earthquakes, with access to affordable working capital solutions. The initiative, supported by the European Commission’s IPA II Fund, sought to address critical economic issues in a region that experienced a significant loss of its workforce due to emigration following the 2023 earthquakes. The program not only aimed to provide financial support but also to facilitate economic reconstruction and workforce retention.
In a parallel transaction, Sullivan worked with Kinstellar to advise EBRD on its collaboration with Banca Transilvania to enhance the SCF program for Profi Rom Food, Romania’s leading retail chain. This marked EBRD’s first SCF initiative in Romania, focusing on strengthening the domestic value chain. The Romanian program aimed to provide up to €10 million in local currency risk participation, potentially expanding Profi’s supply chain financing by €20 million. Participating suppliers were also set to benefit from advisory support and sustainability incentives.
Daniela Barrdear, Sullivan counsel leading the team advising EBRD, expressed satisfaction with the opportunity to assist in EBRD’s support of supply chain finance and their efforts to increase SMEs’ access to working capital finance. The team looked forward to collaborating with EBRD in expanding the Supply Chain Solutions Framework to bridge the trade finance gap.
In disaster-recovery scenarios, SCF plays a vital role in providing essential liquidity to SMEs struggling to maintain operations after economic disruptions. This assistance helps rebuild regional economic ecosystems that have been severely impacted by catastrophic events. Moreover, these targeted interventions extend beyond traditional financial aid by promoting sustainable business practices for long-term economic resilience.
Overall, Sullivan & Worcester’s involvement in these SCF initiatives reflects a commitment to supporting regional economic recovery efforts and fostering sustainable business practices. The firm’s collaboration with EBRD on these projects demonstrates a dedication to providing legal counsel that aligns with the bank’s mission of promoting economic development and resilience in challenging environments.
