EBRD sells its 10% stake in Borsa Istanbul

EBRD sells its 10% stake in Borsa Istanbul

The European Bank for Reconstruction and Development (EBRD) has announced today that it has sold its 10 per-cent stake in Borsa Istanbul. The EBRD had been a shareholder in Turkey’s sole exchange since December 2015.

The Turkish Wealth Fund has bought EBRD’s 10% stake in Borsa Istanbul, raising its stake in the stock exchange to 90.6%.

According to Reuters, the EBRD pointed out two months ago that it would sell its 10% stake in the exchange after a former Halkbank executive who was jailed in the United States was named as the bourse’s CEO.

EBRD said in a statement earlier today:

The EBRD will continue to support an enabling environment for local currency-denominated financial products and the deepening of local capital markets.

The Bank has informed that it will remain committed to further supporting the development of Turkish capital markets and continue backing initial public offerings, making pre-IPO investments and supporting companies post-listing.

The Bank will also support the introduction of alternative sources of finance and new fixed and floating rate instruments, such as Islamic instruments, debt funds, project bonds and securitisation.

EBRD also aims to expand access to venture capital in direct investment and through early-growth and infrastructure funds.

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