Iraqi trade bank reportedly intends to acquire a Turkish lender

DAILY SABAH
ISTANBUL
Published 19.12.2018 00:54
Updated 19.12.2018 08:00

The state-run Trade Bank of Iraq (TBI) announced its will to acquire a bank in Turkey, stating that the acquisition would be covered through a $350 million budget. If TBI succeeds, it will have purchased a foreign bank for the first time. Turkey is the largest trade partner of Iraq.

With assets of $20 billion and trade financing-oriented operations, the state-led TBI is preparing to acquire a bank in Turkey, its largest trade partner with $8 billion in business volume.

TBI Chairman Faisal Al Haimus confirmed their attempt to acquire a bank in Turkey, saying that this would be a traditional bank rather than a participation bank. However, he avoided mentioning the name of the bank they are interested in, according to a report by the The National, a media outlet based in United Arab Emirates (UAE).

Al Haimus had made another attempt to acquire a bank in Turkey previously.

Al Haimus stated that they had suspended their plans to acquire a bank in Turkey for quite some time due to the instability of the Turkish lira, adding, "However, we are planning to acquire one as a result of lira re-achieving appreciation and stability. The bank that we want to acquire has the same expertise as us."

An acquisition will help "diversification into other markets that we think are a good fit for us because rather than going and setting up, there is an existing set-up we can benefit from," said Al Haimus.

TBI wanted to acquire a Gulf bank last year, but failed. If negotiations in Turkey prove to be successful, TBI will have purchased a foreign bank for the first time. Al Haimus said the acquisition would be financed by a $350 million budget.

The Trade Bank of Iraq made its first acquisition in its home country this year through the subscription of an Islamic lender's initial public offering.

Share on Facebook Share on Twitter