Loan agreement for €1.1bn Turkish rail line

By Mike Hayes04 January 2022

Danish credit agency makes its ‘biggest ever’ export loan for high-speed rail project

Danish export credit agency EKF has agreed a €576 million loan for the construction of a high-speed rail project in Turkey.

The loan, which represents around 50% of the project’s value, is the largest ever agreed by the company.

Furthermore, due to the nature of the electric project, the loan is seen as ‘green’ under the EU’s sustainable financing taxonomy.

EKF has signed reinsurance deals with other credit agencies, including Poland’s Kuke and Spain’s Cesce, reducing its own exposure to under €34 million.

Other bodies contributing to the project include Swedish public finance and export credit organisations EKN and SEK.

The 201km line will run from the city of Bandirma to connect with the Istanbul-Ankara high-speed line in Osmaneli.

The main contractor, Turkish firm Kalyon Holding, says infrastructure work is already underway; it will ultimately be responsible for the construction of the tracks, electrification, signalling and telecommunications on the project.

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