Turk Eximbank, an export financing institution supported by the Turkish government, has announced that it has inked the “Turkish green export project” loan agreement amounting to €1 billion to support Turkish exporters’ investments in green transformation. According to the statement, the International Bank for Reconstruction and Development will provide a €600 million first loss guarantee to the lenders and the Turkish Ministry of Finance and Treasury will back the agreement with its counter-guarantee.
The 10-year loan, which will be provided by Deutsche Bank, Standard Chartered Bank, BNP Paribas and ING Bank, will help Turkish exports to overcome challenges due to the EU’s Carbon Border Adjustment Mechanism, under which European importers have to pay carbon tax from 2026. Additionally, it will allow green-product producers to expand their exports, and will support renewable energy production, investments in energy-efficiency projects and the companies’ working capital needs.
