Turkish Sovereign Wealth Fund Among the Top 10 in the World

SadaNews - The Turkish Sovereign Wealth Fund "TWF" has entered the list of the world's top 10 sovereign wealth funds, after finishing last year with assets amounting to $360 billion, according to a report by the International Sovereign Wealth Fund Institute "Global SWF".

Successes and Expansion

A report by Global SWF titled "Turkish Sovereign Wealth Fund: Performance 2024, Strategy and Roadmap 2025" indicated that based on the exchange rate of the US dollar against the Turkish lira over the past year, the total unified assets of the fund reached 12.7 trillion lira, equivalent to $360 billion by the end of the year.

With this result, the Turkish fund surpassed the "Mubadala" fund based in Dubai, UAE, to join the list of the world's top 10 sovereign wealth funds for the first time, according to Anadolu Agency.

Since the beginning of the year, the fund has successfully issued bonds worth $1 billion, in two tranches, the first of which was for $750 million, where demand increased by 14 times. This strong demand from investors pushed the fund to issue additional bonds worth $250 million, bringing the total to $1 billion, according to the fund's newsletter for the first half of the current year.

The fund saved $150 million in interest due to the early repayment of a loan to "Turk Telekom" telecommunications company.

The fund successfully completed the merger of insurance and public pension companies and formed new entities. It also signed a memorandum of understanding with the Iraqi Development Fund to enhance cooperation in vital sectors such as energy, telecommunications, and agriculture.

Strong Pillars

The Turkish Sovereign Wealth Fund has an asset portfolio consisting of 34 companies in 7 sectors.

The financial services sector constitutes 72% of the fund's portfolio, contributed by 3 major state-owned banks in addition to the Istanbul Stock Exchange.

The transportation and logistics sector ranked second with a share of 10.8% of the fund's assets, including Turkish Airlines "THY", Turkish Postal Service "PTT", as well as the Izmir Alsancak Port.

Meanwhile, the energy sector accounted for 10.3%, including Turkish Petroleum "TPAO" and the oil pipeline company "Botas", as well as the "TIVF" refinery.

The telecommunications sector ranked fourth in the Turkish Sovereign Wealth Fund's asset portfolio with a share of 3.7%, while the fund is working to enhance the capabilities of companies in this sector and increase their competitiveness.

This list of companies includes:

Turkish telecommunications company "Turk Telekom" with a 62% ownership stake, the Turkish satellite company "Turksat" with a 100% full ownership, and the telecommunications company "Turkcell" with a 26% stake.

The fund also owns a 100% stake in the Turkish technology fund "TTF" and other technology companies, according to the official website of the Turkish sovereign fund "TWF".