- Region: The Middle East
- Machinery and Equipment
- Export Loans
November 19, 2012
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed a general agreement with Yapi ve Kredi Bankasi A.S. (Yapi Kredi), a commercial bank in Turkey, for extending an export credit line*1 amounting up to the equivalent of 210 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).*2 *3 The credit line is cofinanced with private financial institutions,*4 which brings the overall cofinancing amount to the equivalent of 350 million U.S. dollars.
- Under this agreement, an export credit line is offered to Yapi Kredi to extend loans to local companies in Turkey and its neighboring countries for funding the purchase of Japanese machinery and equipment, such as construction machinery. This export credit line will thus provide medium- and long-term loans to these companies, either in yen or in U.S. dollars, through Yapi Kredi, 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 business, including exports of construction machinery, and other infrastructure-related machinery and equipment, 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 Yapi Kredi have built up close cooperative ties over the years through bank-to-bank loans that supported the export of ships built in Japanese shipyards. JBIC will continue to support Japanese companies’ overseas business deployment, in collaboration with such foreign financial institutions in Turkey and its neighboring countries, by drawing on its various financial facilities and schemes for structuring projects, and by 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 Although the loan agreement was already concluded on November 14, 2012, the press release was issued today, after the related procedures of relevant parties were completed.
- *3 JBIC has separately signed on November 14, 2012, a general agreement with Yapi Kredi for the purpose of offering an export credit line amounting up to the equivalent of 90 million U.S. dollars (JBIC portion) to finance the sector of renewable energy and climate change mitigation. See Press Release on November 19, 2012.
- *4 Nippon Export and Investment Insurance (NEXI) will provide Buyer’s Credit Insurance for the portion cofinanced by private financial institutions.