Lebanon Businessnews News

IFC to invest
in Bank Audi Turkey
Capital increase of $342 million

will include EBRD and other investors

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Odea Bank in Turkey, a subsidiary of the Bank Audi Group, said it will increase its capital by one billion Turkish lira ($342.6 million) through subscriptions from new shareholders and its mother company. The bank had $471 million in equity at the end of 2015.

The International Finance Corp (IFC) and the IFC Financial Institutions Growth Fund will inject a $110 million capital increase while the European Bank for Reconstruction and Development (EBRD) will contribute $90 million. The remainder will be covered by Middle Eastern investors and Bank Audi, which will remain the major shareholder with a stake of more than 75 percent.

Odea Bank will use the injection of capital to expand its financing for the real sector, including large-scale infrastructure projects and small and medium-sized enterprises (SMEs). The bank said in a statement that it also plans to invest in new technologies to strengthen its digital banking network and reach one million of the unbanked in Turkey.

“This represents the largest capital increase in the Turkish banking sector in recent years,” said Samir Hanna, Chief Executive Officer of Bank Audi Group and Chairman of Odea Bank. “Odea Bank is a key pillar of Bank Audi’s future growth. We continue to be committed to its future development,” he said.

The hike in capital will be completed after final regulatory approval, including that of Turkey’s Banking Regulation and Supervision Agency (BRSA).

Odea Bank, which operates 56 branches and employs a workforce of over 1,500, started its operations in late 2012. It registered its first year of substantial profits in 2015, with $17.6 million. Its assets increased in 2015 by 25 percent to reach 11.2 billion, and its deposit base has widened by 20 percent to reach $8.8 billion.
Reported by Shikrallah Nakhoul
Date Posted: Jun 29, 2016
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