Turkey Wealth Fund to Inject Roughly $3 Billion into Three Turkish State Banks
Posted on 05/12/2020
On May 11, 2020, the Turkey Wealth Fund disclosed measures to raise the core capital of three state lenders – Ziraat Bank, Halkbank, and VakıfBank. The wealth fund is raising core capital levels in total of 21 billion Turkish lira (approximately US$ 3 billion).
The Turkey Wealth Fund holds all the shares of Ziraat Bank and the majority of shares in Halkbank. The capital move gives an opening for the Turkey Wealth Fund to become a shareholder of VakıfBank. The capital injection by the wealth fund is aimed at supporting capital structure and adequacy. The capital of Halkbank and Vakıfbank will be enhanced by 7 billion Turkish lira each through private placement, according to stock exchange filings made by state-owned banks.
Ziraat Bank is a state-owned bank in Turkey founded in 1863.