Second Credit Line for Türkiye Sınai Kalkınma Bankası A.Ş. under GREEN Operations
Supporting Renewable Energy and Energy Efficiency Projects in Turkey
- Region: The Middle East
- Untied Loans
The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed on February 10 a loan agreement for a credit line totaling up to USD220 million, of which JBIC's portion is USD120 million, with Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB), the Industrial Development Bank of Türkiye. The loan is co-financed with Sumitomo Mitsui Banking Corporation (lead arranger), The Shiga Bank, Ltd., and The Hyakugo Bank, Ltd. JBIC will also provide a guarantee for the portion co-financed by the private financial institutions.
This credit line is extended as part of JBIC's GREEN operations*1
and is intended to provide funding through TSKB for renewable energy projects and energy efficiency projects in Turkey. This is the second GREEN loan provided to TSKB, following a loan in March 2015*2
The Government of Turkey has set forth improvement of the energy self-sufficiency rate as an important policy issue and is focusing on the development of renewable energy resources and energy consumption efficiency. In October 2021, the Government also ratified the Paris Agreement, which is an international framework of measures against global warming. Although TSKB is a privately owned development and investment bank, it is performing the role of policy-based financing that aims for the sustainable development of Turkey, and it has been supporting efforts for global environmental preservation since its establishment, including actively supporting the energy efficiency improvement in the industrial sector and the promotion of adopting renewable energy. This credit line is expected to promote, through TSKB, the adoption of environmental technologies in line with the energy policy of the Government of Turkey, and help to disseminate Japan's advanced environmental technologies, which have earned high international acclaim in the country.
As Japan's policy-based financial institution, JBIC will continue to support global environmental preservation efforts in cooperation with overseas government financial institutions and Japanese private financial institutions, including regional financial institutions, by drawing on its various financial facilities and programs for structuring projects, and by performing its risk-assuming function.