Turkey’s development bank gets USD 170 million green loan from Japan

JBIC co-financed a EUR 170 million credit line for the Development Investment Bank of Turkey within the program to promote Japanese environmentally-friendly technologies in energy and energy efficiency.

With the latest loan package, the Japan Bank for International Cooperation (JBIC) supported Turkey’s efforts to reduce greenhouse gas emissions with USD 420 million. Chief Representative Ryuta Suzuki signed a USD 170 million deal with General Manager and Executive Director of Development Investment Bank of Turkey (TKYB) Ibrahim Öztop.

It is the third green credit line, after agreements for up to USD 100 million from 2013 and USD 150 million in 2015 for the promotion of Japanese environmental technologies. The funds are intended for photovoltaic facilities and highly energy-efficient power plants that incorporate advanced environmental technologies, as well as the installation of energy-saving equipment.

JBIC covered USD 102 million and agreed to provide guarantees for the entire new package while the rest came Sumitomo Mitsui as the lead arranger, Joyo Bank and Hachijuni Bank. The Japanese development bank said it is helping Turkey to strengthen the level of its energy independence, implement the national economic plan and preserve the environment in the process.

The credit line can be used within the next twelve years. It includes an option for repayment deferral of two and a half years. “As of end-2020, 57% of our loan portfolio is renewable energy projects and 63% are sustainability-linked loans,” Öztop said. In his words, TKYB aims to reduce the usage of fossil fuel.