JBIC Provides Loan to Iron and Steel Works in Turkey --Buyer's Credit for Galvanizing Line--
1. Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Yasuda) signed today a loan agreement totaling US$49.28 million with Eregli Iron & Steel Works Co. of the Republic of Turkey to finance the purchase of a continuous galvanizing line. It was cofinanced with BNP Paribas, with JBIC assuming a 60% share of the total, or $29.57 million.
2. The proceeds of this loan will be used to buy materials, equipment and services from Japan for the construction of a new galvanizing line with an annual capacity of 250,000 tons, including 60,000 tons of steel sheets for automobiles, at Eregli Iron & Steel Works' plant in Eregli City, 400 kilometers northwest of Ankara. The exporter and manufacturer are Mitsui & Co., Ltd. and Nippon Steel Corp., respectively. This loan is the first direct loan to Eregli Iron & Steel Works by JBIC as well as the first buyer's credit to Turkey guaranteed by its domestic private commercial bank, Turkiye Is Bankasi A. S. (Is Bank).
3. As Turkey's industrialization moves forward, there has been growing demand for steel sheets. However, the country currently relies on imports for corrosion resistant galvanized steel sheets for automobiles. The new galvanizing line will produce the processed steel products to substitute for imports. At the same time, it will enable Eregli Iron & Steel Works to increase the value-added content of its products.
4. This loan will promote Japan's exports of materials and equipment to Turkey, while supporting the country's key steel and automobile industries, thereby contributing to its economic development.