Eximbank secures 1 billion euro loan

Türk Eximbank has signed a 1 billion euro loan agreement for the "Türkiye Green Export Project" on May 7, 2024, to ensure sustainable development in line with the country's climate change efforts and carbon footprint targets. The agreement is backed by a counter-guarantee from the Republic of Türkiye Ministry of Treasury and Finance and a 600 million euro first-loss guarantee provided by the International Bank for Reconstruction and Development (IBRD), a member of the World Bank Group.

The 10-year loan, realized with the participation of Deutsche Bank, Standard Chartered Bank, BNP Paribas, and ING Bank, marks Türk Eximbank's largest borrowing transaction to date and is also the first guarantee transaction by the IBRD to support the green transformation of exporters.

This financing transaction (under the Türkiye Green Export Project) aims to help Turkish exporters overcome challenges that may arise from the European Union's Carbon Border Adjustment Mechanism (CBAM) through cooperation between the IBRD, creditors, and Türk Eximbank.

GREEN EXPORTERS SUPPORTED!

Commenting on the agreement, World Bank Country Director for Türkiye Humberto Lopez stated, "The World Bank is pleased to support these initiatives, which not only promote the transition to a low-carbon future worldwide but also enhance the competitiveness of both firms and the country."

In his statement, Türk Eximbank General Manager Ali Güney said, "With the 1 billion euro, 10-year resource we have secured through the IBRD guarantee, we will be pleased to accompany Türkiye's climate change adaptation efforts and support the green transformation of Turkish exporters and green exports through cost-effective, long-term financing."

News Source: 12punto