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ISTANBUL, May 11 (Reuters) - Turkey’s sovereign wealth fund said on Monday it moved to increase three state banks’ core capital by a total of 21 billion lira ($2.97 billion) in an action aimed at supporting capital structure and adequacy.
The Turkey Wealth Fund, which owns state-owned Ziraat Bank and a majority stake in Halkbank, will acquire a holding in Vakifbank as a result of the capital injection, the fund also said.
“In line with our mission to support stability and depth in financial markets ... we have launched works to increase core capital of Ziraat Bank, Vakifbank and Halkbank by a total of 21 billion lira to strengthen capital adequacy and structure,” the fund said in a statement.
Reuters reported last week Turkey’s plans to inject about 20 billion lira of new capital to state banks.
The fund also said the move was aimed at strengthening state banks in the face of the coronavirus outbreak’s economic impacts and fluctuations in global markets.
The capital of Halkbank and Vakifbank will be boosted by 7 billion lira each via private placement, according to stock exchange filings made by state-owned banks.
The financing of the capital increase will be covered by the cash obtained from the sale of domestic debt securities issued by treasury to banks, the fund said. ($1 = 7.0750 liras) (Reporting by Birsen Altayli and Ezgi Erkoyun in Istanbul Editing by Matthew Lewis)