Signing Contract Loan Agreement under General Agreement of Export Credit Line with Isbank in Turkey
Supporting Exports to Turkey of Machinery and Equipment Related to Geothermal Power Generation by Japanese Companies
- Area: The Middle East
- Export Loans
The Japan Bank for International Cooperation (JBIC; Governor, CEO: Hiroshi Watanabe) signed a loan agreement, on August 5, in the amount of up to about USD8 million (JBIC portion), based on the credit line*1
signed in October 2012 to support the export of machinery and equipment related to renewable energy and climate change control, with Turkiye Is Bankasi A.S. (Isbank), a commercial bank in Turkey. The loan is cofinanced with Commerzbank AG, Tokyo Branch, bringing the overall cofinancing amount to about USD14 million, with Nippon Export and Investment Insurance (NEXI) providing insurance for the cofinanced portion.
The loan is intended to provide financing, through Isbank, for Gurmat Elektrik Uretim A.S. (Gurmat) to import machinery and equipment related to geothermal power generation such as steam turbines made by MITSUBISHI HITACHI POWER SYSTEMS, LTD. from Mitsubishi Corporation, TIX-IKS Corporation and TIX-TSK Corporation.
The Turkish government has intensified its efforts to propagate power generation harnessing renewable energy as part of its environmental policy, and has set a target for the share of renewable energy to reach 30% of total energy consumption by 2023, and as a result, many projects in renewable energy and related fields including geothermal power generation are expected to increase in the future in Turkey. This loan will support the export of machinery and equipment related to renewable energy, which in turn will lead to the creation of business opportunities for Japanese companies in the field of renewable energy in Turkey, thereby contributing to maintaining and strengthening the international competitiveness of Japanese industries.
As Japan's policy-based financial institution, JBIC will continue to financially support the business expansion of Japanese companies in Turkey and its neighboring countries, in collaboration with such foreign financial institutions, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
- *1 See Press Release on October 9, 2012.