- Region: The Middle East
- Untied Loans
March 30, 2015
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed on March 27 an untied loan agreement for setting up a credit line totaling up to USD150 million (of which JBIC's portion is USD75 million) with Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB), a development and investment bank in Turkey. The credit line is cofinanced with Mizuho Bank, Ltd. (lead arranger), with JBIC providing a partial guarantee for the cofinanced portion.
This credit line is extended under GREEN operations*1 and intended to provide funding through TSKB for renewable energy projects and energy efficiency projects in Turkey.
Although it is a privately owned development and investment bank, TSKB is performing the role of policy-based financing inside Turkey such as developing capital markets and providing medium- and long-term financing to the private sector. TSKB has been promoting efforts for global environment conservation ahead of other domestic financial institutions, including the promotion of adopting renewable energy and energy efficiency improvement.
The Turkish government has set forth an increase in its self-sufficiency rate as an important policy challenge and laid down the policy of focusing efforts on developing renewable energy resources and improving the efficiency of energy consumption. This credit line will support such efforts by the Turkish government, while it is expected to help disseminate Japan's advanced environmental technologies, which earned high international acclaim in this country. This is also compatible with the "ACE: Action for Cool Earth" announced in November 2013.
As Japan's policy-based financial institution, JBIC will continue to support global environmental preservation efforts in cooperation with such overseas governments and financial institutions by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.