Private equity firm Abraaj Group has acquired a minority stake in Turkish lender Fibabanka through one of its funds.
Abraaj did not disclose the terms of the deal, but said that following this investment it will have deployed $900m of capital in Turkey since 2007.
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Fibabanka will use the investment to expand its franchise and support its growth, Abraaj said.
The Abraaj Group founder and group CEO Arif Naqvi said: "Abraaj’s partnership with Fibabanka marks our eighth global investment in the banking sector and our ninth in Turkey. It represents a compelling opportunity to tap into the underpenetrated banking sector in Turkey where 40 percent of the population remains unbanked and household leverage ratios are low as compared to Europe."
Fibabanka and Fiba Group chairman Husnu Ozyegin added: This is an exciting period of growth for Fibabanka and we are confident that Abraaj’s investment and longstanding experience in the financial services sector will take our business to the next level, in terms of institutionalisation, selectively expanding our branch network, and supporting further growth of the Bank."
Fibabanka currently operates from 70 branches across 18 cities in Turkey. The bank, which was acquired in 2010 by the Fiba Group, manages total assets of $4.3bn and a loan book of $3.2bn at the end of the first quarter of 2016.
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By GlobalDataThe deal is anticipated to close in the third quarter of 2016, subject to customary closing conditions.
