TURKEY: The UK government’s export credit agency has underwritten €781m of financing to support the renovation and full electrification of the 286 km Mersin – Adana – Gaziantep line for 200 km/h operation, in return for a commitment to provide export opportunities for British suppliers.
Loan
The UK Export Finance buyer credit facility provides a guarantee to a bank making a loan to an overseas buyer, so that goods and services can be purchased.
The €781m loan which UKEF enabled supports an €818m total contract. Austria’s export credit agency OeKB and Italy’s SACE also provided reinsurance.
JP Morgan acted as both the arranging and the agent bank for the loan. ING Bank and BNP Paribas acted as mandated lead arrangers and original lenders. Clifford Chance acted as legal counsel.
‘Multimillion-pound’ opportunities
UKEF says the project will create ‘multimillion-pound’ opportunities for the British infrastructure, engineering and project management sectors.
Contractor Rönesans Holding will use the project to build relationships with the UK supply chain, and is negotiating contracts for electronic infrastructure, ESG consultancy, catenary and mechanical components with UK companies.
‘This deal shows that the UK, home to the world’s first railway system, still moves full steam ahead with its export of railroad innovation and expertise’, said Minister for Exports Lord Offord on July 24.
