Turkey’s Akbank will increase capital as bad loans expected to rise

Akbank will receive $558 million from a rights issue. (Shutterstock)
Updated 06 December 2018
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Turkey’s Akbank will increase capital as bad loans expected to rise

  • Akbank plans to increase its capital by 30 percent to 5.2 billion lira through a rights issue
  • Akbank will receive 3 billion lira in proceeds from the issue, which is to be used to improve its capital base and solvency ratios

ISTANBUL: Turkey’s Akbank plans to increase its capital by 30 percent to 5.2 billion lira ($966 million) through a rights issue, it said on Wednesday.
Akbank will receive 3 billion lira ($558 million) in proceeds from the issue, which is to be used to improve its capital base and solvency ratios, the bank said in a stock exchange filing.
“The bank has taken this decision to protect itself from the possible impact of the expected increase of NPLs in the upcoming period, due to the depreciation of lira and slowdown in economy,” said Bulent Sengonul, equity research manager at Is Investment.

 

“In my opinion, capital raising by a bank with a strong capital standing like Akbank might trigger similar moves from other banks,” Sengonul said.
The bank reported a capital adequacy ratio of 18.48 percent, above the required legal limit, and an NPL ratio of 3.3 percent in its third-quarter financial results.
The lira slumped in August, at one stage falling as much as 47 percent from its level at the start of the year.

FASTFACTS

Turkish banks have come under pressure following the introduction of US tariffs which sent the lira tumbling. The Turkish currency slumped in August, at one stage falling as much as 47 percent from its level at the start of the year.


Bahrain LNG terminal to start commercial operations in May

Updated 25 March 2019
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Bahrain LNG terminal to start commercial operations in May

  • Bahrain LNG is the developer of the receiving and regasification terminal within the Khalifa bin Salman Port facility in Hidd

DUBAI: Bahrain’s liquefied natural gas (LNG) terminal will start commercial operations in May, with the first LNG shipment to be imported mostly from the UAE’s ADNOC, state media quoted the CEO of Bahrain’s National Oil and Gas Authority (NOGA) as saying.
Bahrain LNG is the developer of the receiving and regasification terminal within the Khalifa bin Salman Port facility in Hidd, Bahrain, Bahrain LNG’s website says.
The terminal also houses an offshore LNG receiving jetty and breakwater, a regasification platform, subsea gas pipelines from the platform to shore, an onshore gas receiving facility, and an onshore nitrogen production facility, according to the website.
Bahrain’s first LNG floating storage unit is anchored in the United Arab Emirates’ Fujairah port, Refinitiv Eikon data shows.
The storage unit is expected to arrive at the Hidd terminal in May, Bahrain News Agency quoted NOGA chief executive Jassem al Shirawi as saying on Monday.
The report did not specify the overall shipment amount, a small part of which Chevron will deliver later.
The terminal is more than 98 percent ready and the trial period will last only a few weeks, he told the news agency.
“Bahrain has signed agreements with more than 25 companies and gas-producing countries from around the world to import LNG,” al Shirawi was quoted as saying.
The LNG import terminal, with a capacity of 800 million cubic feet per day, will allow Bahrain to import the super-chilled fuel as demand grows for natural gas to feed large industrial projects, generate power and produce oil.