Signing Contract Loan Agreement under General Agreement of Export Credit Line with Yapı Kredi in Turkey
Supporting Export of Machinery and Equipment Related to Geothermal Power Generation by Japanese Company to Turkey
- Region: The Middle East
- Machinery and Equipment
- Export Loans
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed a first contract loan agreement amounting up to the equivalent of USD16.7 million (JBIC portion) with Yapı Kredi Bankasi A.S. (Yapı Kredi), a Turkish bank, under the general agreement of export credit line*1
on the renewable energy sector and climate change mitigation (henceforth, the “renewable energy-related sector”) signed in November 2012. The loan is cofinanced with The Bank of Tokyo Mitsubishi UFJ Co. Ltd., bringing the overall cofinancing amount to the equivalent of USD27.8 million, with the cofinancing portion covered by the Export Credit Insurance of Nippon Export and Investment Insurance (NEXI).
The loan is intended to provide Zorlu Jeotermal Enerji Elektrik Uretimi A.S. (Zorlu Energy), a Turkish company, with the necessary funds, through Yapı Kredi, to purchase the machinery and equipment related to geothermal power generation from Toshiba Corporation, for the construction of geothermal power plant in Manisa, Turkey.
The Turkish government has intensified efforts to propagate power generation focusing on renewable energy as part of its environmental policy, and has set a target for the share of renewable energy to reach 30% of total energy consumption by 2023. Under the circumstances, projects related to renewable energy such as geothermal power generation are expected to increase, and JBIC’s support of the export of machinery and equipment related to geothermal power plants through this loan will lead to the creation of export opportunities in the field of renewable energy sector in Turkey for Japanese companies. Thus, this loan contributes to maintaining and strengthening the international competitiveness of Japanese industries.
As Japan's policy-based financial institution, JBIC will continue to support Japanese companies' overseas business deployment in Turkey, while collaborating with their local 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.