The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Turkey: No crisis of faith

Despite a long-running battle between the government and the army over Turkey’s religious and political future, foreign investors continue to flood the country with capital. That means plenty of business for foreign and domestic investment banks, and for a new wave of small but ambitious boutiques. Lawrence White reports.

Strength of economy should outweigh political crisis

AS AN INDICATION of investors’ confidence in Turkey’s rehabilitation, the success of the Halkbank IPO in the middle of a political crisis could hardly be more telling. As the army threatened another coup and a million secularists took to the streets to protest against the perceived Islamist agenda of the government, Goldman Sachs and local firm Is Investment managed to fill the book for the TL2.5 billion ($1.86 billion) state bank privatization with more than $12.5 billion of orders.

"Just three days after the beginning of the Halkbank roadshow," says Ilhami Koc, general manager at Is Investment, "the Turkish market was hit by political tensions. But we, together with Goldman Sachs as the global bookrunner, did not step back. At the end of a successful offering campaign, investors oversubscribed the Halkbank IPO, the largest privatization IPO in Turkish history, by around eight times."

The international investment community seems not to be unduly concerned by the dispute between the secularist army and the Islamic AK party, and the resulting flow of capital is fuelling a strong IPO market. Foreign banks that have traditionally covered the market from overseas are either opening offices in Istanbul or investing in one of the increasing number of local brokers.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree