UK Export Finance has concluded its first direct lending facility in Turkey. The trade finance loan is part of the export credit agency’s direct lending programme, and is the second of such kind, following the Carillion deal concluded last year.

The loan, worth €23.6mn with a tenor of 10 years, will be used for construction of a gas-fired power plant in southeastern Turkey. This includes the use of a UK-manufactured industrial trent turbine supplied by Siemens, which acquired Rolls-Royce’s aero-derivative gas turbine business in 2014.

The UKEF direct lending facility provides long-term financing at favourable terms to support UK exports. Garanti Bank acted as arranger, agent and security agent.

“We are pleased to perform the first operation in Turkey under this programme,” says Garanti Bank’s deputy general manager Onur Genç. According to him, the financing shows confidence in the bank. “In line with our pioneering role in foreign trade, we will continue to introduce new products and utility solutions,” he adds.