Page 23 - TURKRptMar20

5.3​ FDI
TURKEY -FDI ($)
2013
2014
2015
2016
2017
2018
2019
FDI Net (BoP)
9,927
6,287
14,167
10,791
8,398
9,374
5,506
FDI net inflows (BoP)
13,563
13,337
19,263
13,929
11,099
13,023
8,385
FDI net inflows (% of GDP)
1.43
1.43
2.24
1.62
1.36
1.69
-
FDI net outflows (% of GDP)
0.38
0.75
0.59
0.36
0.32
0.48
-
The largest single M&A deal of 2019 was the acquisition of a 51% stake in ICA, which operates the Yavuz Sultan Selim bridge and connecting roads in Istanbul, by a Chinese consortium for a consideration of $689mn.
UniCredit on February 5 moved one step closer to possibly exiting Turkey by announcing the placement of a 12% stake in Yapi Kredi​. The move followed its November decision to dissolve a JV with Turkish conglomerate Koc Holding that controlled the lender.
Foreign banks have had their fingers burnt by Turkey’s economic turmoil of the past two years, and UniCredit is not the only big global banking and finance services group eyeing the exit. Reportedly concerned by the country’s volatile currency and economic outlook, ​HSBC is considering disposing of or downsizing its Turkey business​. February 5, meanwhile, brought a report from Reuters quoting a source with knowledge of the matter as saying that Citigroup, one of the top foreign banks in Turkey, transferred at least two foreign exchange and rates traders to London from Istanbul last year due to the uncertainty​. Finally, Spanish banking group ​BBVA in mid-January put up for sale Garanti Bank Romania​, a bank that it holds via its near-50% stake in Garanti Bank Turkey.
Unicredit’s unwinding of the 50:50 Koc Financial Services JV, which controlled 82% of third largest Turkish bank Yapi Kredi, gave it a direct 31.9% stake in the bank. That will fall to 20% after the $500mn share placement completed on February 6.
The economic recession in Turkey last year which followed 2018’s summer run on the lira forced UniCredit to write down its Yapi Kredi asset by €846mn. UniCredit said in December it planned to book a €400mn ($440mn) charge in the fourth quarter of 2019 in relation to the unwinding of the Koc accord. To get out of the JV, Unicredit not only sold at a 12% discount to the previous closing
23​ TURKEY Country Report​ March 2020 ​ ​www.intellinews.com