- Region: The Middle East
- Untied Loans
March 29, 2013
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed an untied loan agreement for offering a credit line amounting up to 100 million U.S. dollars (of which JBIC's portion is 60 million U.S. dollars) with Turkiye Kalkinma Bankasi A.S. (TKB), a policy-based financial institution in Turkey.*1 The loan is cofinanced with Sumitomo Mitsui Banking Corporation (SMBC; lead arranger), with JBIC providing a partial guarantee for the cofinanced portion.
- This credit line is extended to Turkey under GREEN operations*2 and intended to provide funding through TKB for environment businesses related to renewable energy projects such as small scale run-of-river type hydraulic power and geothermal power generation, and energy efficiency projects.
- As the government of Turkey ratified the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol, it is actively undertaking environmental measures, including a policy of targeting the reduction of GHG emissions by 11%, compared to the level without any measures, by the year 2020. This credit line is expected to contribute to promoting the introduction of renewable energy and the reduction of GHG emissions in Turkey.
- TKB is a policy-based financial institution that supports Turkey's national development projects, and in recent years, has been actively supporting environment preservation-related businesses and environment-related projects by the private sector in Turkey. This credit line aiming at the environment business sector is expected to further deepen the future cooperative relationship between the two policy-based financial institutions. Thereby, through the expansion of the cooperative relationship, JBIC intends to support the industries and infrastructure businesses in which Japanese companies in Turkey participate.
- JBIC will continue to support global environmental preservation efforts, in cooperation with such overseas policy-based financial institutions, by drawing on its various financial facilities and schemes for structuring projects, and by performing its risk-assuming function.
- *1 Although the loan agreement was already concluded on March 26, 2013, the press release was issued today, after the related procedures have been completed.
- *2 See Information on April 27, 2010.