Asia

Home page

Asia

Turkey Wealth Fund inks $5B MoU with China's Sinosure

26 March 2020 16:55 (UTC +04:00)

The Turkey Wealth Fund (TWF) and China Export and Credit Insurance Corporation (Sinosure) have inked a Memorandum of Understanding (MoU) to promote bilateral economic, trade and investment cooperation, a statement by the TWF said Thursday, APA reports citing Daily Sabah.

According to the MoU signed this week, Sinosure will recommend Chinese enterprises to TWF that are relevant to investors, contractors and financial institutions concerning projects especially in energy, petrochemicals and mining sectors, addressing the current account deficit of Turkey.

Sinosure will also consider providing insurance support up to $5 billion with respect to the financing activities. TWF had recently announced its investment plans in these sectors as well as its contribution to the logistics infrastructure investments of Turkey.

Wang Tingke, the CEO of Sinosure, said that as China's Belt and Road Initiative (BRI) and Turkey's "Middle Corridor" project progress, "the economic, trade and investment cooperation between China and Turkey become more and more frequent." "The MoU is an important milestone for deepening cooperation between TWF and Sinosure. Based on the MoU, I hope we can continue to strengthen communication and coordination in practical projects,” he added.

TWF CEO Zafer Sönmez said China has been a strong trade and business partner to Turkey and they are pleased to bring cooperation to a new level with this agreement. “Announcing this during the times of uncertainties around the globe linked with the influences of the COVID-19 pandemic is an indication of the strength of our cooperation,” Sönmez noted.

TWF is the sovereign wealth fund and the country’s strategic investment arm. Established in 2016 with the main objectives of increasing the value of the state-owned assets in its portfolio and contributing to Turkey’s strategic investments, public shares of 13 companies in eight strategic sectors – including national flag carrier Turkish Airlines (THY), Ziraat Bank, Halkbank, Borsa Istanbul Stock Exchange (BIST), Turkish Post and Telegraph Organization (PTT), Petroleum Pipeline Company (BOTAŞ), Turkish Petroleum Corporation (TPAO) and Türksat, as well as three licenses and real estates – were transferred to TWF.

Sinosure is a state-funded and policy-oriented insurance company tasked with the mission of promoting China’s foreign trade and international economic cooperation. It is the official Export Credit Agency (ECA) of the Chinese government. Since its establishment in 2001, Sinosure has experienced exceptional year-on-year growth while facilitating the financing of numerous strategic projects around the world.