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.

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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The deal is anticipated to close in the third quarter of 2016, subject to customary closing conditions.