The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on June 12 a loan agreement for a credit line totaling up to USD350 million, of which JBIC's portion is USD175 million, with Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB), the Industrial Development Bank of Türkiye. The loan is co-financed with MUFG Bank, Ltd. JBIC will also provide a guarantee for the portion co-financed by the private financial institution.
This credit line is extended as part of JBIC's GREEN operations and is intended to provide funding through TSKB for renewable energy, energy efficiency, power transmission and distribution, water supply and water pollution prevention, and waste management projects in Türkiye. This is the fourth such credit line made to TSKB since March 2015. The most recent one was established in December 2023.
Türkiye faces a structural challenge of a persistent current account deficit driven largely by fuel imports centered on natural gas. Against this backdrop, the government of Türkiye has set a target of achieving carbon neutrality by 2053 and is advancing various policies to promote renewable energy and energy efficiency. At the same time, in response to increasingly severe water scarcity issues in Türkiye, the government is advancing efforts to promote the efficient use of water resources and the reuse of wastewater. TSKB is actively providing financial support for initiatives aimed at global environmental conservation in the country’s industrial sector as a privately owned development bank. This credit line is intended to support decarbonization investments in the industrial sector through TSKB, thereby promoting the government’s efforts toward global environmental conservation.
In the Fifth Medium-Term Business Plan, released in June 2024, JBIC aims to contribute toward realizing both carbon neutrality and economic growth. Under its ESG Policy released in October 2021, JBIC advances the realization of global carbon neutrality by supporting and accelerating energy transitions toward a decarbonized society in emerging and developing countries. The loan is in line with the Medium-Term Business Plan and ESG Policy of JBIC.
As Japan's policy-based financial institution, JBIC will continue to support global environmental preservation efforts in cooperation with overseas government financial institutions, by drawing on its various financial facilities and programs for structuring projects and by performing its risk-assuming function.
