Turkey's Development and Investment Bank, which was established in 1975 and restructured in August 2018, will assume a more active role in initial public offerings (IPO) on the bourse, securitization, company mergers and acquisitions, and financial consultancy, the bank's General Manager İbrahim Öztop said Tuesday.
"We are working on a domestic and foreign public offering of a significant company in the first quarter of 2020," Öztop told reporters at a meeting on the bank's operations and upcoming plans in Istanbul on Tuesday.
The general manager also announced that the Development Fund, established within the bank, will receive financial resources from the government to become an equity partner in the enterprises with growth potential.
"We may establish sub-funds in the Development Fund. Our priority will be to provide support for startups and enterprises with growth potential. The Development Fund will operate as an umbrella entity. Öztop explained. When asked whether the bank will seek investment from the international funds to expand the Development Fund, he said the bank currently focuses on receiving funds from the government and will seek financial support from international intuitions if necessary.
The general manager added that the bank will facilitate financing options for projects that will decrease imports and boost domestic production and exports in the period to come in line with the targets set in the 11th Development Plan.
Öztop also revealed that the Development and Investment Bank's asset size reached TL 18.5 billion by the end of September, recording an increase of 12.8% compared to the same period of last year and 17.5% compared to the end of last year.
The bank's loans account for 78.3% of the total assets, with the total amount of loans reaching TL 14.5 billion by the end of the third quarter this year, Öztop noted. The aggregate credit volume expanded by 6% in the first nine months compared to the end of last year.
Öztop confirmed that the amount of non-performing loans makes up less than 1% of the total outstanding loans. "The ratio of NPLs to total loans fell by 0.1% compared to the end of last year and currently stands at 0.8%," he said.
The capital adequacy ratio of the bank, he added, is 22.4%, which has seen a 58% rise in the third quarter.
Last December, Development and Investment Bank played an active role in introducing brand-new securities in the Turkish financial markets. The bank issued asset-based securities worth TL 4.15 billion in December 2018 and March 2019.
Dedicated to contributing to Turkey's sustainable development and projects that increase imports, the bank has so far financed several renewable energy and tourism projects. Nearly 50% of the loan portfolio consists of financing provided to solar, wind and geothermal power projects with a high ratio of repayment, the bank's officials said.