Turkish State Wealth Fund divests $100 million ownership in VakifBank to foreign investors
Turkiye Wealth Fund Sells 1.53% Stake in State-Owned VakifBank for $99.2 Million
The Turkiye Wealth Fund (TWF) has announced the sale of a 1.53% stake in state-owned lender VakifBank, raising approximately ₺4.1 billion ($99.2 million). The sale was conducted off-exchange and was overseen by Merrill Lynch International, a U.S.-based investment management company, as the sole global coordinator and bookrunner.
The shares were priced at ₺27.07 each, and the settlement for the sale is scheduled for Sept. 19, subject to standard closing conditions. The settlement for the sale of the 1.53% stake in VakifBank is still scheduled for the same date, under the same conditions.
Following the transaction, TWF's direct shareholding in VakifBank will be 73.26%. The fund has agreed to a 90-day lock-up period for the remaining VakifBank shares, under which it will not sell additional shares except under customary exemptions or with the approval of the global coordinator. The lock-up period applies to the VakifBank shares sold, and not the shares remaining in TWF's direct shareholding.
VakifBank offers corporate, commercial, retail, and international banking services. As of the second quarter of 2025, the total assets of VakifBank are ₺4.5 trillion ($109 billion). Shares of VakifBank, traded on Borsa Istanbul under the ticker VAKBN, fell more than 2.8% in Wednesday's session following the announcement.
Interestingly, the sale of the 1.53% stake in VakifBank was not related to TWF's recent $1 billion eurobond issuance in early September. The final yields for the shorter maturity in the eurobond issuance were 7%, and for the 10-year tranche, they were 7.75%.
The sale of the 1.53% stake in VakifBank will increase the bank's publicly traded free float to 7.51%. Goldman Sachs and Citi have received the Global Coordinator and Bookrunning mandate for the sale of VakifBank's shares.
In a separate development, the Turkiye Wealth Fund secured a $500M murabaha financing with Kuwait Finance House for VakifBank. The details of this financing were not disclosed.
This news marks another significant move by TWF in its ongoing efforts to manage and restructure its assets. As the fund continues to navigate the financial landscape, it will be interesting to see how these moves impact the broader economy and the banking sector in particular.
Read also:
- Strategizing the Integration of Digital Menus as a Core Element in Business Operations
- Financial Actions of BlockDAG Following Inter and Borussia Agreements: Anticipating Future Steps
- International powers, including France, Germany, and the UK, advocate for the reinstatement of sanctions against Iran.
- Republicans advocate Trump's domestic policy plans in Iowa, though some business owners remain skeptic
