Borsa Istanbul was established in 2013 as a sole exchange entity of Turkey, combining the previous Istanbul Stock Exchange (ISE), the Istanbul Gold Exchange and the Derivatives Exchange of Turkey
EBRD divests its 10% stake in Borsa Istanbul. Credit: European Bank for Reconstruction and Development.
The European Bank for Reconstruction and Development (EBRD) has sold its 10% stake in Borsa Istanbul to Turkey Wealth Fund for an undisclosed amount.
Borsa Istanbul was established in 2013 as a sole exchange entity of Turkey, combining the previous Istanbul Stock Exchange (ISE), the Istanbul Gold Exchange and the Derivatives Exchange of Turkey.
The predecessor of Borsa Istanbul, ISE was established in 1985, as the only corporation offering trading in equities, bonds and bills, revenue-sharing certificates, private sector bonds, foreign securities and real estate certificates, along with international securities in Turkey.
Established in 2016, Turkey Wealth Fund is a sovereign wealth fund owned by Government of Turkey, and is operated with ‘Strategic Investment Plan’, approved by the Cabinet.
EBRD is committed to supporting the development of Turkish capital markets
EBRD, a shareholder in Borsa Istanbul since December 2015, has approved a new five-year country strategy for Turkey in 2019.
The bank is expected to support an environment for local financial products and enhance local capital markets, through its investment and policy advice.
Additionally, it is expected to support the launch of alternative financing sources and new fixed and floating rate instruments, including Islamic instruments, debt funds, project bonds and securitisation.
EBRD said that it is focused on expanding the access to direct investment venture capital through early-growth and infrastructure funds, and will support the initial public offerings.
According to the bank’s latest Turkey strategy, it would strengthen the flexibility of the financial sector and develop domestic capital and financial markets in Turkey.
The bank’s strategy is also focused on enhancing Turkey’s knowledge economy and higher value-added activities, and promoting good governance, economic inclusion and gender equality through private sector engagement.
Furthermore, the EBRD’s strategy is aimed at speeding up the green economy transition and regional energy connectivity in Turkey.
EBRD is an international financial institution established in 1991 in London, UK as an international developmental investment bank.