Temasek Invests in Turkish Bank

Posted on 12/06/2012

Turkey has remained relatively safe from the Middle East uprisings and partially protected from the European sovereign debt contagion. Turkey is undergoing some levels of privatization and wants to privatize its remaining three state-owned banks. This is usually achieved by public offerings of the stock.

Turkiye Halk Bankasi AS

Total Assets Millions USD
12/31/2011 48,798
12/31/2010 47,451
12/31/2009 40,550
12/31/2008 33,040
12/31/2007 34,200
12/31/2006 24,339
12/31/2005 19,902
12/31/2004 19,065

Source: Filings

Temasek Holdings purchased a stake in a November secondary public offering in Turkiye Halk Bankasi AS, a government-owned bank in Turkey. It is Turkey’s second largest state-owned bank by assets. Public ownership of Turkiye Halk Bankasi AS jumped to 48.86% after the second offering.

Temasek Holdings believes investing in financial companies in countries with a fast-growing middle class is a great investment. Temasek Holdings is seeking other banks in the region as well. Asset allocation to the Middle East remains low for Temasek Holdings at less than 1%.