Translated version of this PSD: Turkish
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.
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.
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.
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.
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