Automotive August 2021

Türk Eximbank
borrows $146M
to boost
sustainability
Türk Eximbank signed a loan agreement
worth 120 million euros ($146.2 million)
with a consortium of international banks,
under the guarantee of the World Bank
Group’s lending arm, the International
Bank for Reconstruction and Development
(IBRD). Including a two-year grace period,
a 10-year term loan was provided by
Deutsche Bank AG, London Branch and ING
European Financial Services PLC, according
to Eximbank’s statement.
The IBRD provided a guaranteed limit
of 250 million euros in June 2020 for
Eximbank, and 190 million euros of this
limit was used in the next month alone.
The remaining 60 million euros were used
for this most recent transaction.
All of these loans will be utilized for the
bank’s sustainability targets, and at least
10% of the total amount will be allocated
towards majority female-owned exporting
companies and private companies
that contribute to women’s labor force
participation.
Some 70% of the total loan will also be
used for financing small and medium-sized
enterprises (SMEs).
Ali Güney, the general manager of
Eximbank, said this 10-year term
transaction during the pandemic is a result
of the trust Turkey attracts in international
markets.
Türk Eximbank took steps last year to
enhance international cooperation with
several organizations. In December, it
signed a memorandum of understanding
(MoU) with the Eastern and Southern
African Trade and Development Bank
(TDB), one of Africa’s major regional
financial institutions to promote bilateral
trade with its 22 member countries.
It also focuses on increasing the number
of reinsurance deals to pave the way for
Turkish companies to undertake more
projects abroad.
It inked a reinsurance cooperation
agreement with Denmark’s export credit
agency, EKF Danmarks Eksportkredit
(EKF), in August 2020 and Austria’s official
export support institution OeKB Gruppe in
February.