Borsa Istanbul Equity Investment

Location:

Turkey

Project number:

44869

Business sector:

Non-depository Credit (non bank)

Notice type:

Private

Environmental category:

FI

Target board date:

24 Jun 2015

Status:

Disbursing

PSD disclosed:

29 May 2015

Translated version of this PSD: Turkish

Project Description

 
The EBRD is providing negotiations to acquire a 10% equity stake in Borsa Istanbul (“BI”), the sole exchange entity in Turkey, via the purchase of ordinary voting shares from BI.
 
The project is a continuation of EBRD’s efforts in supporting the development of Turkish capital markets. The Turkish Government has an initiative to establish Istanbul as a regional financial centre and BI is positioning itself as a financial hub for the broader region spanning through Central Asia, South Eastern Europe to North Africa. The EBRD equity investment will support this initiative and is part of Borsa Istanbul establishing strategic partnership as contemplated in the Turkish Capital Markets Law.

Transition Impact

EBRD as an investor and business partner will be able to support BI in the preparation of its planned IPO, as well as contribute to key development areas at BI such as improvement of corporate governance and potential regional expansion.
 
EBRD will also aim to contribute to further strengthening of Turkey’s capital markets.
 
The transition impact and demonstration effects associated with this potential investment are expected to include:
 
  • More widespread private ownership, i.e. the Government aims to place some of its BI stock with the public at the upcoming IPO;
     
  • Setting standards for corporate governance - EBRD will take an active role and add value to BI’s corporate governance; and
     
  • Market expansion - by growing the market overall by introducing new products, services and attracting both local and regional companies and investors to Turkey’s capital markets.

The Client

Borsa Istanbul A.S., incorporated in Turkey, is the fully integrated operator of capital markets in Turkey following the merger of the Istanbul Stock Exchange, Istanbul Gold Exchange, and Derivatives Exchange of Turkey in early 2013. BI’s exchange operations include activities such as trading, listing, registration, market data and indices. BI’s post-trade operations cover clearing, settlement, custody, and depository services through its subsidiaries Takasbank and MKK.

EBRD Finance

Equity investment 

Environmental and social categorisation, impact, and mitigation

Categorised FI. Borsa Istanbul (BI) will be required to comply with EBRD’s Performance Requirements 2 and 9 and  submit Annual Environmental and Social Reports to the Bank.

Technical Cooperation

None.

Company Contact

Dobrin Staikov
Senior Banker
Tel: +44 20 7338 6839
Email: dobrin.staikov@ebrd.com
 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.