Mayor of Izmir Metropolitan Municipality Tunç Soyer achieved a first in the world. İzmir Metropolitan Municipality signed a 50 Million Euro loan agreement without treasury guarantee with the China-based Asian Infrastructure Investment Bank (AIIB) for the Narlıdere Metro Line Project. While AIIB provided financing to a municipality for the first time in the world, the reputation and reliability of İzmir Metropolitan Municipality was confirmed in the East after the West.
Izmir Metropolitan Municipality has added a new one to its financial cooperation with the USA and Europe. For the Narlıdere Metro Line Project, which is under construction, a funding source of 50 million Euros without a Treasury guarantee was provided from China-based Asian Infrastructure Investment Bank (AIIB). While AIIB lends to a municipality for the first time in the world, İzmir Metropolitan Municipality has taken its access to external finance and financial diversity network one step further.
The loan of 50 million Euros received by the Izmir Metropolitan Municipality has a maturity of 3,20 years in total, with no principal repayment of two years at an interest rate of Euribor + 10.
İzmir's role is getting stronger
Mayor of Izmir Metropolitan Municipality Tunç Soyer signed a mutual loan agreement with Najeeb Haiden, General Manager of Asian Infrastructure Investment Bank (AIIB), at the online meeting today. Mayor Soyer said, “I can proudly say that this agreement made by our municipality is of great importance, as it is the first financing loan signed by the Asian Infrastructure Investment Bank with a municipality in the world, in addition to being long-term and without Treasury guarantee.” Pointing out that the agreement was signed during the pandemic, when the global economy slowed down and it was difficult to find credit, Mayor Soyer continued as follows: “This agreement once again demonstrated the reputation and reliability of Izmir Metropolitan Municipality. We are also working with an international development organization from Asia for the first time. AIIB is not just a bank, it is now a business partner for us. We want to further the cooperation that we have started. Turkey is a bridge between East and West. The cornerstone of this bridge is İzmir. We are happy to have strengthened this role with this collaboration.”
Asian investments paved the way
Noting that they aim to bring bilateral trade between Izmir and Asia to a more advanced point and a sustainable structure, President Soyer said, “With this agreement, I believe that the Chinese companies invest in Izmir. "We are starting to work today for long-term and successful new collaborations."
"We also want to support Buca Metro"
AIIB Vice President Konstantin Limitovsky said, “For AIIB, this project is strategically important. This is the first loan agreement signed with a municipality in AIIB's history. It is also the first Euro-based project. With this loan, AIIB sets a visible precedent. I think that the new horizons for cooperation in Turkey this agreement. We want to provide support for Buca Metro, ”he said.
Total 205 million Euros
Within the scope of the project that will extend the existing metro line from Fahrettin Altay to Narlıdere, İzmir Metropolitan Municipality has received 80 million Euros from the European Bank for Reconstruction and Development (EBRD), 50 million Euros from the Black Sea Trade and Development Bank (BSTDB), EBRD Type B secured a total of 25 million Euros of financing, 50 million Euros from Société Générale and 205 million Euros from Asia Infrastructure Investment Bank as a syndicated loan.
To be put into service in the last quarter of 2022
F.Altay-Narlıdere line, the new link of the rail system chain, which reaches a length of 179 kilometers, will be 7,2 km long. There will be Balçova, Çağdaş, Dokuz Eylül University (DEÜ) Hospital, DEÜ Faculty of Fine Arts, Narlıdere, Martyrdom and District Governorate stations, which are planned to be put into service in the last quarter of 2022 and will be completely underground.
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