- Region: The Middle East
- Untied Loans
June 5, 2013
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed an untied loan agreement*1 for offering a credit line amounting up to 25 million U.S. dollars (of which JBIC's portion is 15 million U.S. dollars) with Denizbank A.S., a private commercial bank of Turkey. The credit line is cofinanced with Mizuho Corporate Bank, Ltd. (Mizuho; lead arranger) and The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) with JBIC providing a partial guarantee for the cofinanced portion.
- The fund is also provided under the Turkey Sustainable Energy Financing Facility Extension (TurSEFFE)*2 of the European Bank for Reconstruction and Development (EBRD). And the technical assistance under the European Union grants-funded will be utilized in forming new projects and the monitoring process. JBIC signed today a memorandum of understanding (MOU) with EBRD to cooperate for the cofinancing between both parties, which is expected to contribute to more efficient implementation of cofinancing.
- The loan, under GREEN operations*3, will be financed 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. This follows the similar JBIC loan*4 signed in November 2010 with Denizbank. 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 loan is expected to contribute to promoting the introduction of renewable energy and the reduction of GHG emissions in Turkey.
- As a public financial institution, JBIC, will continue to support global environmental preservation efforts, in cooperation with such overseas local financial institutions, by drawing on its various financial facilities and schemes for structuring projects including cooperating with other international financial institutions, and performing its risk-assuming function.
- *1 The loan agreement was signed on March 27, 2013, and the press release was issued today, as the above MOU has been signed today.
- *2 TurSEFFE is EBRD's program to Turkish commercial banks for supporting energy efficiency and renewable energy investments undertaken by private small and medium enterprises (SMEs). And an EU grant is provided which enables EBRD to engage consultants to help banks and businesses with technical advice for such investments.
- *3 See Information on April 27, 2010.
- *4 See Press Release on November 4, 2010.