Odea Bank, a subsidiary of Bank Audi Group in Turkey, increased their capital by TL 1B ($290M) by issuing equity shares in order to fund infrastructure projects and increase access to loans for SMEs, in addition to strengthening the bank’s digital banking network. The International Finance Corporation (IFC), via the IFC Financial Institutions Growth (FIG) Fund, and the European Bank for Reconstruction and Development (EBRD) subscribed to this capital increase. The IFC and EBRD are to invest the equivalent of $110M and $90M, respectively.
Of the $110M to be invested by the IFC, $38.5M will be provided by the FIG Fund, while the remaining portion of the issue will be purchased by investors from the Middle East and Bank Audi. Resultantly, Bank Audi Group will maintain its status as a majority shareholder of Odea Bank, with a stake of more than 75%.
Completion of the transaction is subject to approval from several governing bodies, including the Banking Regulation and Supervision Agency (BRSA).