Turkey Wealth Fund Sticks in Almost $2 Billion in State Banks
Posted on 02/09/2022
Turkiye Halk Bankasi AS and Turkiye Vakiflar Bankasi TAO announced capital increases in which shares will be sold through private placement to Turkiye Varlik Fonu (Turkey Wealth Fund), which holds a majority stake in both lenders. The banks will raise 13,400,000,000 liras (US$ 990 million) each, according to separate filings to the stock exchange late on Wednesday. The Turkish lira weakened 44% in 2021.
Turkey Wealth Fund is keen on enhancing the state lenders balance sheets. Turkey Wealth Fund injected US$ 6.7 billion to support state banks in two separate rounds in 2019 and 2020.