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The Japan Bank for International Cooperation (JBIC; Governor: AMAKAWA Kazuhiko) signed on June 24 a loan agreement for a credit line totaling up to USD350 million, of which JBIC's portion is USD175 million, with the Türkiye Kalkınma ve Yatırım Bankası A.Ş. (TKYB, the Development and Investment Bank of Türkiye). The loan is co-financed with Mizuho Bank, Ltd. JBIC will also provide a guarantee for the portion co-financed by the private financial institution.
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This credit line is extended as part of JBIC’s GREEN operations
*1 and is intended to provide funding through TKYB for renewable energy, energy efficiency, power transmission and distribution, and water supply and water pollution prevention projects in Türkiye. This is the fifth such credit line made to TKYB since March 2013. The most recent one was established in December 2023
*2.
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Türkiye’s current account deficit is driven largely by fuel imports centered on natural gas. The government of Türkiye has established development plans to increase the stake of renewable energy in Türkiye’s energy production, 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 water scarcity issues in Türkiye, the government is advancing efforts to promote the efficient use of water resources and the reuse of wastewater. TKYB, a government-owned development finance institution in which the Ministry of Treasury and Finance holds virtually all the shares, provides financial support for projects in line with Türkiye’s development plans including in the energy sector. This credit line is intended to support the realization of public infrastructure, large-scale renewable energy projects, and energy efficiency projects through TKYB, thereby promoting the government’s efforts toward global environmental conservation.
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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.
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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.
