Loans

5/29/2024

Turk Eximbank Signs a Loan Agreement worth € 1 Billion under the Guarantee of the World Bank

The credit with a maturity of 10 years provided with the participation of Deutsche Bank, Standard Chartered Bank, BNP Paribas and ING Bank has the nature of being the highest borrowing transaction of Turk Eximbank until date and the first guaranteed transaction of IBRD supporting the green transition of exporters at the same time…

Turk Eximbank has signed a loan agreement of € 1 billion.

According to a disclosure made by the Bank, Turk Eximbank signed a “Turkiye Green Export Project” loan agreement worth € 1 billion in total on May 7, 2024 with the counter-guarantee of the Ministry of Treasury and Finance of the Turkish Republic and the guarantee of the International Bank for Reconstruction and Development (IBRD), a member of the World Bank Group for an amount of € 600 million to provide a sustainable development in line with fighting against climate change and the carbon note target of the country.

The credit with a maturity of 10 years provided with the participation of Deutsche Bank, Standard Chartered Bank, BNP Paribas and ING Bank has the nature of being the highest borrowing transaction of Turk Eximbank until date and the first guaranteed transaction of IBRD supporting the green transition of exporters at the same time.

The financing transaction in question (within the scope of Turkiye Green Export Project) aims to assist Turkish exporters overcome the difficulties they may face due to the Carbon Border Adjustment Mechanism (CBAM) of the European Union with cooperation among IBRD, creditors and Turk Eximbank.

World Bank Country Director for Turkiye Humberto Lopez commenting on the agreement, made the following statement: “The World Bank expresses its happiness by assisting such initiatives not only supporting a sound transition towards a low carbon future worldwide but which will also enhance the competitive power of companies and the country alike.”

Turk Eximbank’s General Manager Ali Güney spoke as follows in a statement he made: “We will feel the happiness of having supported the green transition of Turkish exporters and green exports by means of long term loans at suitable costs in line with efforts of Turkiye to conform to climate change policies with the fund in question with a maturity of 10 years amounting to € 1 billion secured with IBRD guarantees.”