UK: Ankara, London agree $2.3B loan for Türkiye's green railway
Bankrolling a high-speed rail line between Turkish capital Ankara and port of Izmir is UK's biggest-ever civil infrastructure export finance deal that it says is "strongly sustainable."
Britain has agreed its biggest-ever civil infrastructure export finance deal to underwrite a high-speed rail line between the Turkish capital Ankara and the port of Izmir in the west of the country, a senior official said.
"Türkiye is a vital trading partner for the UK ... It is fitting that UK Export Finance's biggest ever civil infrastructure deal is strongly sustainable," International Trade Secretary Anne-Marie Trevelyan said in a statement on Thursday.
Britain hosted the COP26 climate conference last year and its Trade Ministry said the deal would help Türkiye decarbonise its transport sector and meet commitments to reduce greenhouse gas emissions.
UK Export Finance (UKEF) will guarantee a $2.3 billion loan to fund 503 kilometres of high-speed electric railway, the ministry said.
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Green loan structure
There was no immediate response from the Turkish government over the deal.
Several contracts worth hundreds of millions of dollars were expected to be awarded for British-made railway lines, signalling and electrification systems, Britain said.
Credit Suisse and Standard Chartered Bank are leading the financing of the project.
Türkiye's Finance Minister Nureddin Nebati earlier said the deal would have a green loan structure.
"We are very glad for the cooperation and strong longstanding relations with the UK government and we hope to further strengthen our collaboration," Nebati said in a statement.