Turkey's Halkbank, Vakifbank to make capital increases

Turkiye Vakiflar Bankasi TAO

09/02/2022 17:53

ISTANBUL, Feb 9 (Reuters) - Turkish state-owned Halkbank and
Vakifbank said on Wednesday they will carry out capital
increases by private placement, with combined total sales
proceeds of 26.8 billion lira ($2 billion) and the shares issued
to be sold to the Turkey Wealth Fund.
    In a statement to the Borsa Istanbul, Halkbank  HALKB.IS 
said its board decided to carry out the  capital increase by
private placement, with total sales proceeds through the capital
increase amounting to 13.4 billion lira ($990.13 million).
    The shares issued through the capital increase will be sold
to the bank's majority shareholder, the Turkey Wealth Fund, by
way of a private placement without a public offering and through
a wholesale transaction on the Borsa Istanbul share market.
    Vakifbank  VAKBN.IS  said in a separate statement its board
also decided to carry out a capital increase through private
placement, within the limit of the bank's registered share
capital ceiling.
    It said the total sales proceeds will be 13.4 billion lira
in cash, with the new shares issued by virtue of the capital
increase also to be sold to the Turkey Wealth Fund (TWF) by way
of a private placement and without being offered to the public.
    Separately, local development bank TKYB  KLNMA.IS  said it
was going to borrow 1.5 billion liras from a TWF fund to bolster
its capital.
($1 = 13.5336 liras)

 (Reporting by Ceyda Caglayan and Can Sezer
Writing by Daren Butler
Editing by Kirsten Donovan)
 ((daren.butler@tr.com; +90-212-350 7053; Reuters Messaging:
daren.butler.thomsonreuters.com@reuters.net))