Emirates NBD eyes Turkish banking sector

Emirates NBD, the leading Gulf Arab lender by assets, said yesterday it is looking at buying opportunities in the Turkish banking sector.

"We're open to the thought [of buying into the Turkish banking sector]. Actually we've been working on it for the past 12-15 months, and we're continuing to look into it," Abdul Wahed al Fahim, Emirates NBD General Manager Wholesale Banking, said.

Turkey's banking sector is expected to see privatisations in both large lenders – Ziraat and partially state-owned Halkbank. Turkey has also been a major target for foreign acquirers attracted by strong lending growth, despite the country having some of the highest interest rates in emerging markets.

Leading Turkish banks posted lending growth of more than 10 per cent in the first quarter compared with the end of last year, despite a slowdown in the economy's growth rate. The Dubai-based bank said yesterday that it had raised $300 million (Dh1,102m) in syndication loan for Tekstil Bankasi to the Turkish bank expand its trade finance business.

The financing comprises a $156.5m one-year loan with interest of 65 basis points more than the benchmark London interbank offered rate and a €87.5m two-year loan paying 90 basis points more, joint sale manager Emirates NBD said. European banks lent half the money, with Middle East banks paying 30 per cent and 20 per cent coming from the US and Canada. (With inputs from agencies)