- Region: The Middle East
- Machinery and Equipment
- Export Loans
March 25, 2015
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed on March 23, an individual loan agreement in the amount of approximately EUR22 million (JBIC portion) with Yapi ve Kredi Bankasi A.S. (Yapi Kredi), a commercial bank in Turkey, under the export credit line*1 extended to promote export to Turkey and its neighboring countries (including in the Middle East, Central Asia and North Africa) in November 2012. The loan is cofinanced with Sumitomo Mitsui Banking Corporation and BNP Paribas, Tokyo Branch, bringing the overall cofinancing amount approximately to EUR45 million, with Nippon Export and Investment Insurance (NEXI) providing an insurance on the cofinanced portion by the private financial institutions.
The loan is intended to finance, through Yapi Kredi, the purchase of hydraulic excavators from Caterpillar Japan Ltd. by Borusan Makina Ve Guc Sistemleri Sanayi Ve Ticaret A.S. (Borusan)*2.
The Turkish economy has achieved average annual growth of 5.4% in the last five years from 2010 to 2014, and the demand for construction equipment is increasing for domestic urban development and industrial development. The loan will contribute to maintaining and strengthening the international competitiveness of Japanese industries, as well as the further development of the Turkish economy through the export of construction equipment.
As Japan's policy-based financial institution, JBIC will continue to financially support the expansion of Japanese companies' businesses in 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 See Press Release on November 19, 2012.
- *2 Borusan is a sales dealer of Caterpillar Inc. in Turkey.