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£1.7 billion loan guaranteed to construct high-speed electric railway
Product: Buyer Credit Facility
Our biggest-ever sustainable, civil infrastructure deal
We guaranteed a £1.7 billion loan to fund construction of 503km high speed electric railway in Turkey.
Nine-figure contracts will be awarded to UK rail suppliers as a condition of UK support. UK companies of all sizes are expected to supply British-made railway lines, turnouts, point machines, fasteners, material and equipment for signaling, telecommunication and electrification systems, as well as vital insurance and freight services.
The £1.7 billion green financing was guaranteed through our Buyer Credit Facility, with Credit Suisse and Standard Chartered structuring and coordinating banks arranging the transaction.
This is the first UK-supported rail transaction in Turkey for over 160 years, and when complete, the new line will provide a faster, lower carbon alternative to current air and road routes. Engineering and construction giant ERG International Group will use its close ties with the UK supply chain to support the project.
ERG look forward strengthening ties with UKEF and the Turkish Government in the construction sector and adding value to the economies by making advance engineering and technological solutions available.
Buyer finance for infrastructure projects
Our Buyer Credit Facility provides a guarantee to a bank making a loan to an overseas project, with the provision that they source at least 20% of supplies from the UK.