On March 31, 2015, MIGA issued guarantees of $333.2 million covering a loan facility to Turkiye Ihracat Kredi Bankasi AS (TE), also known as Türk Eximbank, from a syndicate of commercial banks with Citibank International plc acting as the Agent for the facility. MIGA’s 11-year coverage includes principal and interest and is against the risk of non-payment of the lenders’ long-term financing to TE.
The project involves an increase in medium and long-term financing by TE to the Turkish export sector, focusing on mostly small and medium enterprises (SMEs). TE’s increased longer-term lending capacity will be funded by the $345 million (€250 million) 10-year loan facility from Citibank N.A., Norddeutsche Landesbank – Girozentrale (NORD/LB), and Société Générale S.A. The loan facility will complement TE’s other funding sources and will enable it to provide much-needed medium and long-term funds to SMEs at competitive pricing and contribute to Turkey’s efforts to grow its export sector.
This is especially relevant for SMEs, which currently lack attractive financing options.
Sustainable export strategies are an integral part of Turkey’s long term development plans. The MIGA-supported loan facility is aimed specifically at helping TE reach its credit-expansion targets for SMEs. TE’s increased lending capacity, based on the expanded resources realized through this MIGA-supported funding, enables companies operating in Turkey to maximize their export opportunities, improves the competitiveness of Turkish exports in foreign markets, and assists in job creation and economic growth.