MIGA Guarantee Will Help Turkey Grow its Export Sector
MIGA Guarantee Will Help Turkey Grow its Export Sector
Sector is important source of economic growth and jobs
Washington, DC, April 7, 2015—The Multilateral Investment Guarantee Agency (MIGA), the political risk insurance and credit enhancement arm of the World Bank Group, announced today that it will help Turk Eximbank (Turkiye Ihracat Kredi Bankasi, AS) provide medium and long-term funds to Turkish exporters, including small and medium enterprises (SMEs).
MIGA is providing guarantees of US$333.0 million to a syndicate of banks, jointly led by Citibank N.A. and Norddeutsche Landesbank Girozentrale of Germany, against the risk of non-honoring of financial obligations by a state-owned enterprise on their 10-year loan facility to Turkey’s official export credit agency. Société Générale S.A. of France is also participating in the loan facility. The two-tranche facility will complement Turk Eximbank’s other funding sources.
The MIGA-supported loan facility is aimed specifically at helping Turk Eximbank provide credit to SMEs to support export-led growth. Turk Eximbank is fully owned by the government of Turkey and will continue to play a crucial and expanding role in implementing the country’s sustainable export strategy. “Export-led growth strategies are an integral part of Turkey’s economic development plans,” said HAYRETTİN KAPLAN, CEO of Turk Eximbank. “MIGA’s backing of the €250 million, dual-tranche loan facility will help us provide longer-term financing for exporters at a lower cost. We are looking to expand this program in order to reach exporting SMEs, that have difficulty accessing long-term, lower-cost financing from commercial banks.”
“MIGA’s coverage will help provide longer-term financing to Turk Eximbank, which will help them diversify their financing sources and expand their SME portfolio,” said Valentino Gallo, Global Head of Export and Agency Finance of Citigroup. He continued, “We’re pleased to collaborate with Turk Eximbank in achieving its mandate to support Turkish exporters, investors, and contractors operating abroad.”
“We’re pleased to continue our efforts to support private-sector led growth in Turkey,” said Keiko Honda, MIGA Executive Vice President and CEO. “Turk Eximbank’s increased lending capacity, based on the expanded resources realized through this MIGA-supported funding, will boost the competiveness and productivity of Turkish exporters, assisting in job creation and economic growth. MIGA is extending the guarantee under the assumption that Turk Eximbank will continue to perform a public function.”
A signing ceremony for the transaction will be held in Washington on April 22, 2015.
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MULTILATERAL INVESTMENT GUARANTEE AGENCY
A Member of the World Bank Group
1818 H Street, NW, Washington, DC 20433
MIGA Contact:
Mallory Saleson, MIGA
Tel: +1 202 473-0844
E-mail: msaleson@worldbank.org
Rebecca Post, MIGA
Tel: +1 202-473-1964
E-mail: rpost@worldbank.org
Cara Santos Pianesi, MIGA
Tel: +1.202.458.2097
E-mail: csantospianesi@worldbank.org