Turkey’s Botas secures $929 million loan from Deutsche Bank to buy LNG
Ankara: Turkey’s state gas company secured a 925 million euro ($929 million) loan from Deutsche Bank AG to finance liquefied natural gas purchases.
The three-year loan allows Boru Hatlari ile Petrol Tasima AS, or Botas, to purchase LNG from pre-established suppliers in 10 countries, including the United States, Algeria and Qatar, according to an emailed statement. by Deutsche Bank. The funding is guaranteed by the Turkish government and can be increased in the future.
The deal marks the public pipeline operator’s first international loan for LNG imports. And while it will fund only a fraction of Turkey’s gas consumption, it paves the way for similar deals that will allow Botas to diversify supplies currently dominated by Russia and Iran.
The loan facility comes at a crucial time for Botas. The Turkish company has been hit by soaring gas prices which it has struggled to pass on to consumers as authorities desperately seek to contain inflation at its highest level in 24 years ahead of a crucial election year. Botas said it sells gas to domestic consumers at 30% of cost.
The government pumped more money into Botas in the first quarter than it did in all of 2021 to make it work. The company was also the main beneficiary of the central bank’s $18 billion in foreign exchange sales for state-owned enterprises in the first half of this year, adding to pressure on Turkey’s foreign exchange reserves.
Botas will use the loan to also buy LNG from suppliers in Germany, France, Italy, Spain, Switzerland, Singapore and the UK, he said.