- Region: The Middle East
- Machinery and Equipment
- Export Loans
February 14, 2013
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today, a general agreement with Denizbank A.S. (Denizbank), a private financial institution in Turkey, for offering an export credit line*1 amounting to the equivalent of 120 million U.S. dollars (JBIC portion) to finance Japanese exports to Turkey and its neighboring countries (including in the Middle East, Central Asia and North Africa). The credit line is cofinanced with private financial institutions*2, which brings the overall cofinancing amount to the equivalent of 200 million U.S. dollars.
- Under this agreement, an export credit line is offered to Denizbank to extend loans to local companies in Turkey and its neighboring countries for the purchase of Japanese machinery and equipment: those related to renewable energy (such as geothermal, wind, biomass, solar photovoltaic and solar thermal energy); those related to the sector of climate change mitigation (such as thermal power plants with CCS*3 facilities, CCS projects, waste to energy projects, hybrid power plants*4, combined heat & power projects, district heating and/or cooling related projects); and additionally construction machinery and equipment for infrastructure development. This export credit line will thus provide medium- and long-term loans, either in yen or in U.S. dollars, through Denizbank, thus supporting the expansion of the export of Japanese machinery and equipment to these countries.
- In recent years, there have been growing expectations for Japanese exports of machinery and equipment to Turkey and its neighboring countries through collaboration between Japanese and Turkish companies. Under these circumstances, there has been growing interest in a variety of export businesses, and expectations on the major role JBIC should play therein. This credit line will support the export of machinery and equipment to Turkey and its neighboring countries, thereby contributing to maintaining and improving the international competitiveness of Japanese industries.
- JBIC and Denizbank have built close cooperative ties by signing the loan agreement*5 under GREEN*6 operations in November 2010. JBIC will continue to support the deployment of Japanese companies' export of machinery and equipment including those in the field of renewable energy and other related sectors to 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 An export credit line is a form of export credit in which JBIC makes a commitment of the maximum amount of credit to be extended to foreign banks or other entities to finance the export of machinery and equipment from Japan.
- *2 Nippon Export and Investment Insurance (NEXI) will provide Buyer's Credit Insurance for the portion cofinanced by private financial institutions.
- *3 Carbon dioxide Capture and Storage (CCS) is a technology that separates and captures carbon dioxide, the main culprit behind global warming, from emissions from fossil fuel power plants and stores it in deep waterbeds or geological formations.
- *4 Hybrid power is a form of power generation that combines renewable energy and fossil fuels as heating sources.
- *5 See Press Release on November 4, 2010.
- *6 See Information on April 27, 2010.