Industrial and Commercial Bank of China Limited ("ICBC") announced that it had completed on May 22, 2015 the acquisition of a 75.5% stake in Tekstil Bankası A.Ş. ("Tekstilbank") from GSD Holding A.Ş., resulting in the first business institution operated in Turkey by a Chinese bank.

Tekstilbank is a licensed depository bank in Turkey and mainly engages in operations such as corporate banking, SME banking and retail banking. It also provides securities brokerage, investment banking and assets management services through its subsidiary Tekstil Securities. Tekstilbank has sound business fundamentals and local operating capability with 44 branches and around 900 employees. Its branches are located in Turkey’s most economically developed regions which together account for approximately 70% of Turkey’s GDP.    

Geographically located on the eastern and western edges of the Asia continent respectively, China and Turkey have a long history of bilateral economic and trade relations. The economic ties between the two countries date back to over two thousand years ago when the historical Silk Road was established. As important emerging economies today, China and Turkey complement each other in areas such as capital, technology and markets. With the new strategic cooperation framework in place, the economic and trade cooperation between the two countries has entered the most auspicious period in history. At present, China is Turkey’s third largest trading partner and second largest source of imports. According to the long-term trade target set by the governments of China and Turkey, the bilateral trade volume is expected to exceed US$100 billion by 2020. China and Turkey already have extensive cooperation in areas like high-speed rail, electricity generation, aerospace and satellites. Turkey has also become an important overseas EPC market for Chinese enterprises. The establishment of the Silk Road Economic Belt, coupled with Turkey becoming a Prospective Founding Member of the Asian Infrastructure Investment Bank, will further broaden the scope of cooperation between the two countries in developing infrastructure projects.

ICBC, listed both in Hong Kong and Shanghai, leads global banking industry in capital base, total assets, market capitalization, deposits, loans, and number of clients. The US magazine Forbes has recently again ranked ICBC at the top of Global 2000 list, a position taken by the bank for the third consecutive year. In 2014, ICBC was named the “Global Bank of the Year” by the British magazine The Banker, an award granted to an Asian commercial bank for the first time. ICBC has established a global network of approximately 400 overseas institutions providing superior services to 42 countries and regions. In addition, ICBC has a coverage of 20 African countries through its 20% strategic equity investment in Standard Bank of South Africa.

The acquisition of Tekstilbank further complements ICBC’s international footprint. The transaction will also enhance ICBC’s service capability for customers from both China and Turkey, thereby promoting the local economic development.