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The Turkish high-speed rail project has secured funding

Another Turkish high-speed rail project receives international support of 1 billion euros, this is reported by the railway transport news portal Railway Supply.

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Turkiye’s latest high-speed rail project will receive a financing package of 1.247 billion euros (1.351 billion dollars), including a loan of 1.027 billion euros guaranteed by the export credit agencies of the UK, Italy, Austria, and Poland.

The package, facilitating Turkiye’s continued development of the 140-kilometer line, also includes a commercial loan of 220 million euros, partially supported by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).

The loan funds are intended for the development of the regional railway line between Erkoy and Kayseri.

The financing has been structured by the Mitsubishi UFJ financial group (MUFG),appointed by the Turkish Ministry of Finance as the sole lead organizer, coordinator, structurer, and bank agent of the package, enabling institutional investors to collaborate with syndicate creditors.

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The line between Erkoy and Kayseri will connect with the new Ankara-Sivas line, opened in April 2023, to reduce traffic congestion and enhance export connectivity in the region around the capital.

Turkish contractors Doğuş İnşaat, Çelikler, and Özkar, who built the Ankara-Sivas railway line, will also execute the new project through a joint venture.

This project marks Turkiye’s third railway line to receive support from the export credit agencies of the UK, Italy, and Austria, including another high-speed line between Mersin and Gaziantep in the southern part of the country, backed by a 781 million euro loan.

In recent years, Turkiye has undertaken several significant railway projects, aiming to establish itself as a vital trade partner between Asia and Europe.

Source: railway.supply

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