Turkish Eximbank Signs Credit Agreement Worth Billion

(MENAFN- AzerNews) By News Centre

Turkish Eximbank has signed a credit agreement for the TurkiyeGreen Export Project, totaling 1 billion euros.

According to the statement made by Turkish Eximbank, the bankhas added another financing opportunity to support the investmentsexporters will make in green transformation.

Under the guarantee structure of the Treasury and Ministry ofFinance and the initial loss compensation structure of theInternational bank for Reconstruction and Development (IBRD), amember of the World Bank Group, in the amount of 600 million euros,Turkish Eximbank has signed a credit agreement totaling 1 billioneuros for the "Turkiye Green Export Project."

The 10-year term loan, realized with the participation ofDeutsche Bank, Standard Chartered Bank, BNP Paribas, and ING Bank,is the largest borrowing transaction of Turkish Eximbank to date,and it is also the first guarantee transaction of IBRD supportingthe green transformation of exporters.

This financing transaction aims to help Turkish exportersovercome the difficulties that may arise as a result of theEuropean Union's Border Carbon Adjustment Mechanism (CBAM) throughcooperation between IBRD, creditors, and Turkish Eximbank under theTurkiye Green Export Project.

While the Border Carbon Adjustment Mechanism of the EuropeanUnion initially targets carbon-intensive sectors as of 2026, itwill be implemented in other carbon-intensive sectors and carbontaxes in other export markets in the future.

In addition to focusing on the mentioned green transformation,the loan also aims to support social goals such as financingcompanies supporting women's participation in the workforce and SMEfinancing.

"I believe it will support our country's goal of achieving netzero emissions by 2053."

Kerem Dönmez, General Director of External Economic Relations atthe Ministry of Treasury and Finance, stated in the statement thatthey attach great importance to providing exporters, the drivingforce of the economy, with access to appropriate conditionalfinancing and supporting their adaptation to the European Union'sBorder Carbon Adjustment Mechanism to increase the internationalcompetitiveness of exporters, and he added:

"I believe that the Turkiye Green Export Project, developed forthis purpose, will lead the green transformation of our country'sexporters, create new employment opportunities, and support ourcountry's goal of achieving net zero emissions by 2053. We willcontinue to work with the World Bank and other development partnersto support productivity-based and export-oriented qualified growthin the coming period."

Humberto Lopez, World Bank Country Director for Turkiye, statedthat the ongoing success of the export sector is vital for theTurkish economy and the transition towards sustainability remains ahigh priority for the government.

Lopez said, "The World Bank is pleased to support initiativesthat will not only contribute to the transition to a low-carbonfuture worldwide but also enhance both the competitiveness of firmsand the country."

"We will be pleased to support green exports through long-termfinancing."

Ali Güney, General Manager of Turkish Eximbank, stated that theywill be pleased to support green exports through the 10-yearfinancing of 1 billion euros secured with the IBRD guarantee,accompanying Turkiye's efforts to adapt to climate change, andsupporting Turkish exporters' green transformations and greenexports through affordable long-term financing.

Güney expressed that the Border Carbon Adjustment Mechanism(CBAM) set by the European Union, which will subject Turkish-madegoods to import tariffs in the form of "carbon taxes," willdisadvantage our exporters in terms of competitiveness compared tocompanies using low-carbon production processes and potentiallyaffect the marketability of their products in the European Unionand other export markets. He made the following assessment:

"This situation is expected to expand CBAM to include allsectors in the relatively near future, by 2030. Therefore, it isexpected that our exporters will adapt and decarbonize theirproductions as much as possible to protect their export potentials the resources we provide, we will also do our part in drawingup a strategic roadmap for transitioning to low-carbon exports andpreserving the competitiveness of exporters in sectors affected byCBAM."

Orhan Özalp, Country Director of Turkiye and General Manager ofDeutsche Bank AŞ, stated that the 1 billion euro agreement providedto Turkish Eximbank is a landmark agreement demonstrating DeutscheBank's commitment to Turkiye and the bank.

Özalp said, "Deutsche Bank's commitment to Turkiye will continueto grow with the improvement in the country's macro outlook."

Kaşif Atun, General Manager of Standard Chartered, highlightedthat this agreement assists Turkish Eximbank in providing long-termfinancing at very competitive rates, stating, "Supporting ourclients and the communities we operate in on their journey towardsenergy transition and decarbonization is at the heart of our bank'sstrategy. We are grateful to be part of this transaction, which isvery important for the country."

Ümit Leblebici, General Manager of Türk Ekonomi Bankası (TEB),emphasized that TEB actively participates in providing financingfor its customers' sustainability-focused investments andsupporting their projects in this field, stating:

"We provide consultancy support in the green transformationprocesses to our corporate customers, including exporters, andoffer them the financing products they may need. We also benefitfrom the knowledge and experience of our global partner, BNPParibas Group, in the fields of ESG and sustainable finance."

Alper Gökgöz, CEO of ING Turkiye, stated that they positionsustainability among their strategic priorities and believe thatgreen transformation requires collective effort and action.

Gökgöz expressed their belief that the green transformations ofexporters in Turkiye are crucial for preserving their exportcapacities and gaining competitive advantage.

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