- Region: The Middle East
- Untied Loans
November 4th, 2010
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed on November 2nd an untied loan agreement totaling up to 20 million US dollars with Denizbank A.S., a private commercial bank of Turkey. This is the first loan that JBIC signed under the GREEN,*2 following enforcement of the law to revise part of the Japan Finance Corporation Act on March 31, 2010. The loan was cofinanced by the Bank of Tokyo-Mitsubishi UFJ, Ltd. (lead arranger), Sumitomo Mitsui Banking Corporation (SMBC), and Mizuho Corporate Bank, Ltd., with JBIC providing guarantee for the portion cofinanced by these private financial institutions.
- The loan was also cofinanced by the Turkey Sustainable Energy Financing Facility (TurSEFF)*3 provided by the European Bank for Reconstruction and Development (EBRD) and the Clean Technology Fund (CTF), an environment fund managed by the World Bank. Ahead of this transaction, JBIC had signed a memorandum of understanding (MOU) with EBRD*4 to promote further cooperation between both parties, including financing operations under the GREEN.
- The loan will finance on-lending provided by Denizbank A.S., one of the leading commercial banks in Turkey, for domestic climate change mitigation projects, such as energy efficiency and renewable energy projects. It is thus expected to reduce greenhouse gas (GHG) emissions in Turkey. The Turkish government prepared in January 2009 the Clean Technology Fund Investment Plan for developing renewable energy and improving energy efficiency in cooperation with EBRD, the World Bank and the International Finance Corporation (IFC). In August 2009, the government ratified the Kyoto Protocol and began actively taking measures to mitigate climate change. This loan will contribute to the Turkish government’s Investment Plans for climate change mitigation.
- JBIC will continue to support steady implementation of GHG emission reduction projects including cooperating with other international financial institutions, in order to contribute to the sound development of the Japanese and the international economy.
attach: Untied Loan to Denizbank in Turkey
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 See Information on April 27, 2010.
- *3 The Turkey Sustainable Energy Financing Facility provides credit lines EBRD and CTF offered to Turkish commercial banks for supporting energy efficiency and renewable energy investments undertaken by private small and medium enterprises (SMEs).
- *4 See Press Release on September 6, 2010.