ISTANBUL: Istanbul has secured €110 million ($121 million) of financing from Deutsche Bank for an underground transport project, the mayor of the Turkish city said on Sunday.
Speaking at a news conference, Ekrem Imamoglu gave no further details on the loan, but said it was for an ongoing project on the Asian side of Istanbul.
The city of Istanbul, home to one-fifth of Turkey’s 82 million people, would likely need the treasury’s backing to issue Eurobonds. Due to increased costs of seeking funding without federal backing, municipalities often prefer to borrow from development agencies or seek project-based financing.
Turkey’s treasury-backed foreign debt stock stood at $14.7 billion at the end of the second quarter. Treasury-guaranteed issues by municipalities have not been done since 2010, according to treasury data.
So far this year Istanbul has secured $115 million in financing from Societe Generale, $86.2 million from Black Sea Trade and Development Bank and $108.4 million from the European Bank for Reconstruction and Development.