- Region: The Middle East
- Machinery and Equipment
- Export Loans
March 15, 2013
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed on March 14, the first individual loan agreement for 51 million U.S. dollars (JBIC portion), under the general agreement with Turkiye Is Bankasi A.S. (Isbank), the largest commercial bank in terms of assets in Turkey, for offering an export credit line*1 to finance Japanese exports to Turkey and its neighboring countries (including in the Middle East, Central Asia and North Africa) executed in October 2012. This first sub-loan is cofinanced with Mizuho Corporate Bank, Ltd.*2, which brings the overall cofinancing amount to 85 million U.S. dollars.
- The loan is intended to finance, through Isbank, the purchase of machinery and equipment related to petrochemical plants from Mitsui Engineering & Shipbuilding Co., Ltd., by Petkim Petrokimya Holding A.S. (Petkim)*3, a Turkish company, to increase the capacity of its ethylene production plant from 520,000 tons to 587,600 tons per year. The loan will thereby contribute to maintaining and improving the international competitiveness of Japanese industries, and thus support the export of Japanese machinery and equipment related to petrochemical plants.
- JBIC will continue to support Japanese companies' overseas business deployment in Turkey and its neighboring countries in collaboration with such overseas local 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.
- *2 Nippon Export and Investment Insurance (NEXI) will provide Buyer's Credit Insurance for the portion cofinanced by Mizuho Corporate Bank, LTD.
- *3 Petkim was established in 1965 and is the largest petrochemical maker in Turkey with various ethylene-based petrochemical manufacturing facilities.