Abu Dhabi's ADQ acquires 96% stake in Bank Audi's Turkish subsidiary

The deal marks ADQ’s latest move to expand its portfolio in the banking sector in Turkey

Founded in 2012, Odeabank is Turkey’s 13th largest private bank by gross loans and customer deposits. Alamy

Abu Dhabi-based investment and holding company ADQ has signed a definitive agreement with Lebanon's Bank Audi to acquire a 96 per cent stake in Odeabank, the lender’s Turkish subsidiary.

The financial details of the transaction, which is subject to regulatory approvals, were not disclosed.

Following the agreement, Bank Audi and other investors, including International Finance Corporation, European Bank for Reconstruction and Development and IFC FIG Investment Company, have agreed to sell their interests in the share capital of Odeabank to ADQ.

This strategic acquisition marks ADQ’s latest move to expand its portfolio in the banking sector and strengthen its presence in Turkey’s growing financial market.

As part of ADQ, Odeabank will have access to fresh capital, which will allow the company to “unlock synergies with our wider portfolio”, said Mansour AlMulla, ADQ’s deputy group chief executive.

“We are confident that this will accelerate the execution of Odeabank’s growth plans, while driving technological innovation in the financial services sector.” ‍

Founded in 2012, Odeabank is Turkey’s 13th largest private bank by gross loans and customer deposits. As of June 2024, it operates through 41 branches in 15 cities across the country. While the bank primarily focuses on commercial lending, it has expanded its offerings to include a growing retail and wealth management division.

The transaction aligns with Bank Audi’s “strategic focus on its home market as well as its presence in Europe”, said Khalil El Debs, chief executive of Bank Audi.

Established in 2018, ADQ has built a diverse portfolio of major enterprises and has increasingly focused on expanding its presence in the Turkish market in recent years.

In July last year, it signed two multibillion-dollar agreements with Turkey to provide earthquake relief financing and boost bilateral trade. One agreement, made with Turkey's Ministry of Treasury and Finance, involved $8.5 billion in financing for earthquake relief bonds, while in another $3 billion deal, ADQ partnered with the Export Credit Bank of Turkey to provide credit financing solutions.

In 2022, it launched a $300 million fund with Turkey Wealth Fund, which invests in companies developing emerging technologies or improving existing technologies.

In the same year, ADQ acquired Turkish pharmaceuticals company Birgi Mefar Group, which has become part of ADQ’s wholly owned global life sciences holding company Arcera.

In November 2021, ADQ also signed agreements with various Turkish investment entities to boost the development of priority sectors in the UAE and Turkey ranging from technology to health care.