Fibabanka sells its minority stake to Abraaj Group

Fibabanka sells its minority stake to Dubai-based Abraaj Group Fibabanka, a private bank under Fiba Holding which is owned by the prominent Turkish businessman Hüsnü Özyeğin, has sold 9.95 percent of its minority stake to a private equity investing firm. According to an announcement made yesterday by the Dubai-based Abraaj Group, the investment is the ninth for the group in Turkey.

With 70 branch offices currently open across Turkey, Fibabanka is said to be set to utilize the investment made through this sale to increase its number of branch offices as well as support the company's growth.

After completing the necessary paperwork regarding the purchase of shares, the sale should be finalized in the third quarter of 2016.

Fibabanka was established through the acquisition of the Turkish arm of Millennium Banco Comercial Portugues, known as Millennium Bank A.Ş., by Özyeğin in 2010. Also, through the shareholder agreement signed in October, 19.9 percent of Fibabanka's total shares were sold to the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD), which each possess 9.95 percent of the bank's total shares.

Under the management of Fiba Holding, Fibabanka grew twelvefold within five years and the bank increased its assets by 39 percent in 2015, with net profits of TL 81.6 million ($28 million) and an 11 percent return on equity.

Regarding the signing of the shareholder agreement on June 3, Özyeğin, the head of the board of directors, expressed his satisfaction with the Abraaj Group, saying they aim to increase Fibabanka's growth with the strategic partnership.

Partner of Abraaj Group and chairman of its Turkish-Central Asian region, Selçuk Yorgancıoğlu, noted that the group plans to make Fibabanka a leader in its sector, emphasizing that the Turkish market has great potential in terms of household debt ratios - one-third of those in the eurozone - despite the tenfold credit portfolio growth of the past 10 years.