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Turkish state-run lender Halkbank has met with nearly 60 global investors across four major financial hubs as it moves ahead with plans for a secondary public offering after a long-running U.S. case over alleged violations of Iran sanctions was dismissed in June.
The bank's General Manager, Suleyman Ozdil, said foreign investor interest in Abu Dhabi, Dubai, London, and New York in Halkbank was "strong," adding that the bank plans to carry out the offering at the first suitable opportunity, depending on market conditions.
Halkbank has ₺7.2 billion in capital, with the sovereign wealth fund Türkiye Wealth Fund holding 91.5% of the bank and the rest publicly traded. The bank completed a $2.5 billion secondary offering in 2012. In August, it applied for another offering to raise capital to ₺9 billion.
The offering price and timing have not been disclosed, while Reuters estimates the shares to be sold could be worth about $1.7 billion.
The decision followed the dismissal of the U.S. case, which ended restrictions on Halkbank’s access to international financing imposed since 2019. The bank later announced that it had secured an additional $1.1 billion from international markets following the dismissal.
Ozdil also addressed the recent fund turmoil, which followed defaults at several investment funds, triggered a broader market sell-off, and prompted the CMB to order the liquidation of 131 funds.
Shares of smaller companies with high valuations and significant fund ownership came under heavy pressure, raising concerns that foreign investor interest in Turkish equities could weaken for some time.
Ozdil said foreign investors remain interested in Turkish banks and do not view the fund crisis as a major obstacle to Halkbank's offering. They also believe the turmoil could leave the market healthier, he added, while banking stocks remain attractive because of their valuations and the perceived strength of the sector.
"They think the banking sector is healthy and prices are cheap. They think the banking sector will be the first place an investor looking to take Türkiye risk will look. I think it will be a good public offering at a time when morale is low," Ozdil said.
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