Türkiye's state-owned financial institution, Türk Eximbank, signed recently a 140 million euro (nearly $152 million) syndicated loan agreement under the insurance of Japanese state-owned Nippon Export and Investment Insurance (NEXI) with a 10-year maturity, it said on Tuesday.
In a statement, Export Credit Bank of Türkiye (Türk Eximbank) said the financing from commercial banks, with a repayment guarantee of the treasury, will be used to bolster trade activities between Turkish exporters and Japanese firms.
The financing facility will also support small and medium-sized enterprises (SME) exporters, female-inclusive exporters and environmentally conscious exporters producing green products, the statement said.
Regarding the deal, Türk Eximbank General Manager Ali Güney said: “The fund provided by NEXI's insurance will be an important resource for our exporting companies to access working capital financing. With this valuable business partnership established between the two institutions, we plan to contribute to our country's economy by supporting commercial activities between Türkiye and Japan."
"In addition, this fund, which will be used to support our companies with sustainability-themed activities, will also be instrumental in encouraging our companies with potential in this field," he added.
“With many similar transnational transactions that we plan to sign in the near future, we will continue to meet all types of financing needs of our exporters, such as investment, working capital and trade credit, at affordable costs and with maturity opportunities.”
NEXI, which provides insurance for the loan as the Japanese export credit agency, said: "We are very pleased to have the opportunity to support Turkish exporters through Türk Eximbank, an important business partner of ours."
"The fund will be used to support the working capital needs of Japanese companies in Türkiye as well as Turkish exporters who have business relations with Japanese companies."
"We think this agreement is a nice way to celebrate the 100th anniversary of diplomatic relations between Türkiye and Japan. We believe that this financing source will not only support Turkish exports but also strengthen the economic partnership between the two countries by developing Japanese commercial activities in Türkiye," read the statement.
