The Turkey Wealth Fund, which is state-backed, has successfully secured its first loan without requiring a treasury guarantee, with backing from banks listed in the UAE. According to a report by Daily Sabah, the sovereign fund raised €1.1 billion (approximately $1.2 billion) through a two-year syndicated loan involving 20 banks from 12 different countries.

The interest rates for the loan were set at the Euro interbank offered rate plus 2 percent annually for the €837 million tranche, while the $285 million portion will incur a rate of the secured overnight financing rate plus 2.25 percent annually. The demand for the loan was robust, with the order book exceeding twice the amount sought in 2023, prompting the addition of a dollar tranche.

ICBC Türkiye Investment Securities, Emirates NBD Capital, and First Abu Dhabi Bank served as coordinators and lead bookrunners for the loan. Additionally, Emirates NBD Bank fulfilled the role of documentation and credit agent for the transaction.

In August 2024, the Turkish government transferred treasury shares of 12 companies to the Turkey Wealth Fund, which currently manages assets valued at $300 billion, as reported in its 2022 financial statement. The fund’s total equity rose by 60 percent year on year, reaching $49 billion. Among its significant holdings are a 49 percent stake in Turkish Airlines, 100 percent ownership of Ziraat Bankasi, and an 80.6 percent stake in Borsa Istanbul, alongside total ownership of Turksat, a communications satellite company.