Turkey’s sovereign fund injects capital to state banks

ISTANBUL

Turkey Wealth Fund (TWF) has injected 51.5 billion Turkish Liras ($3.5 billion) in capitals of the state banks.

A process to increase core capital levels of state-owned lenders Ziraat, Vakıfbank and Halkbank has been completed, TWF said in a statement on March 9.

The Development Investment Bank of Turkey (TKYB), Ziraat Participation Bank and Emlak Participation Bank have been granted subordinated loans as part of the process, it added.

Ziraat received 21.8 billion liras (about $1.5 billion), while Halkbank and Vakıfbank were granted 13.4 billion liras (around $901,3 million).

The fund’s portfolio includes 28 companies in seven sectors, two licenses and 46 real estates. State lenders Ziraat Bank, HalkBank and VakıfBank, the country’s stock exchange market Borsa Istanbul, Turkish Airlines, GSM giants Turkcell and Türk Telekom, and natural gas firm Botaş are among them.

TWF also owns the majority of the shares of the Istanbul Finance Center project. The construction of the IFC in the country’s metropolis and commercial hub is expected to be completed this year.

The combined net profit of Turkish banks showed a strong 57 percent increase in 2021 from the previous year to reach 92 billion Turkish Liras, according to data from the Banking Regulation and Supervision Agency (BDDK).