- Region: The Middle East
- Machinery and Equipment
- Export Loans
June 18, 2015
The Japan Bank for International Cooperation (JBIC; Governor, CEO: Hiroshi Watanabe) signed a loan agreement on June 17 for arranging an export credit line*1 in the amount of up to JPY5 billion (JBIC portion) with Enka Pazarlama Ihracat Ithalat A.S. (Enka Pazarlama), a company incorporated in Turkey. The loan is cofinanced with Sumitomo Mitsui Banking Corporation, bringing the overall cofinancing amount to JPY10 billion, with Nippon Export and Investment Insurance (NEXI) providing insurance for the cofinanced portion.
The loan is intended to set the credit line for the necessary funds to import construction machineries and equipment from Japanese companies by Enka Pazarlama, a Turkish company based in Istanbul that imports and sells construction machineries and equipment. This loan follows several credit lines,*2 provided by JBIC since 2005, to finance the Enka Group in purchasing construction machineries and other equipment from Japan.
Turkey's economy has grown at 5.4% per annum on average over the five years from 2010 to 2014, and the demand for construction machineries and equipment is growing for domestic urban development and mining and industrial development. The loan will contribute to the maintaining and strengthening of the international competitiveness of Japanese industries, as well as boosting the further growth of the Turkish economy, through the export of construction machineries and equipment by Japanese companies.
As Japan's policy-based financial institution, JBIC will continue to support the export of machineries and equipment and the overseas business deployment of Japanese companies in growing markets such as Turkey, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
- *1 An export credit line facility is a form of export financing in which JBIC makes a commitment to the maximum amount of credit to be extended to its client (foreign banks or other entities) to finance exports of machinery, equipment and services from Japan.
- *2 JBIC extended credit lines to Enka Pazarlama and its subsidiaries in September 2005, March 2007, July 2008 and January 2012. See press releases for the details.