Trade Minister Ruhsar Pekcan reported that Türk Eximbank provided 380m euros from the banks consortium under the World Bank guarantee.
Pekcan, in a written statement, signed an agreement for a total of 26 million Euros, on 50 June, by Turkish Eximbank's World Bank Group member International Bank for Reconstruction and Development (IBRD), which guarantees 380% of the principal amount under the guarantee of the Ministry of Treasury and Finance. He expressed.
Pekcan stated that the total cost of a 2-year non-refundable 10-year transaction with the participation of Standard Chartered Bank, ING Bank and Societe Generale was around 6 months Euribor + 2,83 percent, and the fund in question is much more affordable than the issue of a eurobond in a similar term under current conditions. He noted that it was provided at cost.
Pekcan new type of presence globally in coronavirus (Kovid-19) outbreak during the 10-year term in international markets to the successful conclusion of this process drawing attention once again shown confidence in Turkey, "In this context exporters regarding up to 10 years to be granted to the maturity of working capital and investment a new loan window will be opened for financing of expenditures. ” found the assessment.
"First time in Turkey, the second operation in the world"
Ministers Pekcan, pointing to the nature of the transaction, gave the following information: "These resources, the banking sector under the terms of a partial credit guarantee structure of the World Bank held the first in Turkey, the second process similar in structure and in the world. Although it has a lower guarantee rate than the first transaction in the world with a similar structure, Turkish Eximbank has reached a maturity of 3 years longer with the resource provided by the Turkish Eximbank, and a price advantage of approximately 19 basis points has been obtained in the market conditions in Kovid-400 outbreak compared to a bond issue that the bank will realize in similar maturities. . The structure of the loan was formed by discussing with a total of 3 international financial institutions specialized in financing and investment banking, in addition to the World Bank, at the end of the negotiations that lasted approximately 19 months.
“70 percent will be made available to SMEs”
Pekcan stated that the entire loan will be evaluated within the scope of Türk Eximbank's new sustainability process. “70 percent of the loan will be used in financing SMEs. In this context, we aim to focus on new exporters. At least 10 percent of the loan will be made available to companies that will be evaluated within the scope of the new definition of 'Women's Participation' developed with the World Bank on the principle of gender equality. ” used expressions.
Pekcan stated that within the framework of creating a total of 12 million Euros of financing, with a guarantee of a maximum of 250 million Euros approved by the World Bank on 500 June, it will be possible for Turk Eximbank to create a similar, up to 10-year, cost-effective, 120 million euro resource in the following period.
Emphasizing that Türk Eximbank plans to continue its efforts to provide long-term, cost-effective resources by increasing its cooperation with transnational institutions such as the World Bank in order to increase the support for medium / long-term financing of exports, Pekcan expressed that the resource in question would be beneficial for exporters.