Announcement of World Bank Joins Japanese Commercial Banks in Co-Financing Loan to Turkey on September 17, 1987

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. BANK NEWS RELEASE NO. 88/Sl3 Contact: Fawzi Rihane (202) 473-2675 WORLD BANK JOINS JAPANESE COMMERCIAL BANKS IN COFINANCING LOAN TO TURKEY WASHINGTON, Sept. 17 -- The World Bank has approved a participation of Japanese Yen 4.4 billion (about $30 million) in a syndicated commercial loan to Turkey totalling Japanese Yen 29.5 billion (about $200 million). The loan will support the government in the energy sector adjustment program. This cofinancing operation is the third of its kind for Turkey in the Japanese market with direct World Bank participation. The cofinancing provides Turkey with additional foreign exchange to finance the necessary imports under the energy sector adjustment program. A group of 14 Japanese financial institutions are involved in the commercial syndication. They are: the Bank of Tokyo, the Dai-Ichi Kangyo Bank, the Dai-Ichi Mutual Life Insurance Company, the Fuji Bank, the Industrial Bank of Japan, the Mitsubishi Bank, the Mitsui Bank, the Nippon Life Insurance Company, the Sanwa Bank, the Sumitomo Bank, the Sumitomo Life Insurance Company, the Taiyo Kobe Bank, the Tokai Bank, and the Yasuda Trust and Banking Company. In addition to the Bank loan, the Export-Import Bank of Japan has announced last month the signing of a protocol on an untied loan to the government of Turkey, equivalent to $300 million. The EXIM loan is made in cofinancing with a previously approved World Bank loan totalling $325 million to help finance the efficient generation and distribution of energy in Turkey. Over the last two years, the Bank's cofinancing program with commercial banks for Turkey has proceeded well with already two previous commercial syndications for the Kayraktepe Hydropower Project and the Financial Sector Adjustment Loan. For the latter two syndications, substantial finance has been raised on attractive terms and the program has involved Japanese Yen as well as Eurodollar funds and has helped promote interest in cofinancing in the international banking community.