Abraaj Group acquires minority stake in Turkey’s Fibabanka
The investment to be used by the bank to support its growth
Abu Dhabi: The Abraaj Group on Monday announced the acquisition of a minority stake in Fibabanka, a prominent bank in Turkey, through one of its funds.
The investment by the private equity firm will be used by Fibabanka to expand its franchise and support its growth, the group said in a statement.
The bank was acquired in 2010 by the Fiba Group, led by pioneer Turkish banker Hüsnü Özyegin.
Fiba Group is a conglomerate operating mainly in financial services, retail, energy, health care and real estate with total assets of over $17 billion and annual revenues of $1.2 billion, The Abraaj Group said.
Fibabanka currently has 70 branches across 18 cities in Turkey with total assets of $4.3 billion and a loan book of $3.2 billion at the end of Q1 2016.
Arif Naqvi, Founder and Group Chief Executive of The Abraaj Group, said: “Abraaj’s partnership with Fibabanka marks our eighth global investment in the banking sector and our ninth in Turkey.”
“It represents a compelling opportunity to tap into the underpenetrated banking sector in Turkey where 40 per cent of the population remains unbanked and household leverage ratios are low as compared to Europe.”
Following its investment in Fibabanka, Abraaj will have deployed $900 million of capital in Turkey since 2007. Details of the deal were not disclosed.
Employing over 300 people, Abraaj has over 20 offices spread across five regions with hubs in Dubai, Istanbul, Mexico City, Nairobi and Singapore.
