EBRD acquires a stake in Turkey’s Fibabanka

By Olga Rosca
@olgarosca

EBRD supports international trade in Turkey through Fibabanka

High potential lender gains trust of international financial institutions

The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) are acquiring minority stakes in Fibabanka, a fast-growing Turkish bank.

In its first equity acquisition in the Turkish banking sector, the EBRD is investing in newly issued shares representing up to 10 per cent of Fibabanka’s share capital and voting rights. It may also participate in potential future capital increases.

Fibabanka was established through the acquisition in 2010 of the Turkish arm of Millennium Banco Comercial Português by prominent local businessman Hüsnü Özyeğin, the owner of FIBA Holding.

The bank currently ranks 22nd by assets out of 47 lenders in the Turkish banking sector. It operates a network of 67 branches across the country and employs over 1,200 people.

Nick Tesseyman, EBRD Managing Director for Financial Institutions, said: “When in 2013 we provided finance to Fibabanka, we were impressed by its strong management, its agility in adapting to the rapidly changing environment and the commitment to its SME clients. Today we are proud to become a shareholder in Fibabanka and work alongside Fiba Holding to support the growth of this promising lender.”

Hüsnü Özyeğin, the founder and chairman of Fiba Holding, added: “Our strategic partnership with the IFC and the EBRD – and the added value these foreign partners are bringing – will help us achieve Fibabanka’s growth targets even more quickly.”

The EBRD started investing in Turkey in 2009. It currently operates from offices in Istanbul, Ankara and Gaziantep. In 2014 Turkey became the leading recipient country of the EBRD, with new investments worth €1.4 billion.

To date, the Bank has invested over €6 billion in Turkey through more than 160 projects in infrastructure, energy, agribusiness, industry and finance. It has also mobilised over €12 billion for these ventures from other sources of financing.