Export credit agencies from the UK, Italy, Poland, and Austria have joined Mitsubishi UFJ Financial Group (MUFG) to secure €1.247bn to build a high-speed railway in Turkey.
Turkey’s Ministry of Transport and Infrastructure wants to build a fast, 140km electrified line between Yerköy and Kayseri.
It’s expected to support economic growth by increasing passenger and freight rail capacity around Turkey’s capital region.
It will be built by a joint venture between Turkish contractors Doğuş İnşaat, Çelikler and Özkar.
They were the main contractors for the Ankara-Sivas High Speed Railway, which started running in April last year.
The financing package comprises a €1.027bn loan guaranteed by by the country export credit agencies, and a separate €220m commercial loan facility supported in part by the Islamic Corporation for the Insurance of Investment and Export Credit.
UK Secretary of State for Business and Trade Kemi Badenoch is in Turkey seeking to strengthen business links.
“With its major economy and strategic position, Turkey presents huge opportunities for UK businesses, and I’m excited to start discussions on ensuring our new trading relationship with Turkey unlocks those opportunities,” she said.
This is the third high-speed railway to be backed by UK Export Finance and its counterparts in Italy, Poland, and Austria. Combined, the projects amount to some 900km of rail.
The two others are the Ankara-Izmir and the Mersin-Gaziantep lines.