Turk Eximbank borrows $146M under World Bank guarantee

ISTANBUL

Turk Eximbank signed a loan agreement worth €120 million ($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 payment free 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 on Friday.

The IBRD provided a guaranteed limit of €250 million in June 2020 for Eximbank, and €190 million of this limit was used in July. The rest -- €60 million -- was used for this transaction.

All of these loans will be utilized for the bank's sustainability targets, at least 10% of the total amount will be used for woman exporters and private companies which 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 Guney, 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.