December 31, 2019 / 6:40 AM / 24 days ago

Turkish Wealth Fund buys EBRD's 10% stake in Borsa Istanbul

FILE PHOTO: The headquarter of the European Bank for Reconstruction and Development (EBRD) is seen in London, Britain, November 22, Britain 2016. REUTERS/Stefan Wermuth

ISTANBUL (Reuters) - The Turkish Wealth Fund has bought the European Bank for Reconstruction and Development’s (EBRD) 10% stake in Borsa Istanbul, raising its stake in the stock exchange to 90.6%, the fund said on Tuesday.

Sources had told Reuters in October that the EBRD 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.

The EBRD, which had held a stake in the Turkish bourse since late-2015, said it remains committed to further supporting the development of Turkish capital markets following the sale.

“The EBRD will continue to support an enabling environment for local currency-denominated financial products and the deepening of local capital markets,” the EBRD said in a statement.

The sources said in October that the CEO appointment was the latest concern EBRD had with the bourse’s direction and convinced it to sell its stake.

The EBRD said it will support the introduction of alternative sources of finance in Turkey and will continue backing initial public offerings.

Reporting by Ezgi Erkoyun; Editing by Daren Butler

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