ADQ Acquires Audi Bank’s Subsidiary Odeabank

ADQ, an Abu Dhabi-based investment and holding company, and Bank Audi sal (Bank Audi), one of Lebanon’s leading banks, have signed an agreement announced through which ADQ will acquire 96% stake in Odeabank A.S., Bank Audi’s subsidiary in Turkiye.

Pursuant to the agreement, Bank Audi and other investors, which include International Finance Corporation, IFC FIG Investment Company Sàrl, and the European Bank for Reconstruction and Development (EBRD), have agreed to sell their respective interests in the share capital of Odeabank to ADQ.

Established in 2012, Odeabank is Turkiye’s 13^th largest private conventional bank by total gross loans and customer deposits, operating with 41 branches in 15 cities across the country and employing approximately 1,300 people as at the end of June 2024.

Primarily providing commercial lending, Odeabank has a growing retail and wealth management business. Odea Bank has the stated ambition to become Turkiye’s leading premier “phygital” bank by seamlessly integrating its physical presence with innovative digital banking services under the umbrella of its remote branch “Bank’O” which opened in 2019.

In addition to an attractive financial profile and a balanced loan book, Odeabank brings a strong brand and a scalable, hybrid operating model, all of which are prerequisites for future growth, ADX said. ‍

Foundation for Sustainable Development

ADQ’s Deputy CEO Mansour AlMulla said that the Odeabank’s acquisition reinforce their commitment to invest in assets that lay the foundation for the sustainable development of ADQ’s portfolio companies as well as the wider economy.

“As part of ADQ, Odeabank will have access to fresh capital, which will allow the company to unlock synergies with our wider portfolio, underpinned by attractive market dynamics in Turkiye. We are confident that this will accelerate the execution of Odeabank’s growth plans while driving technological innovation in the financial services sector,” he said.

Bank Audi CEO Khalil El Debs said that the transaction aligns well with Bank Audi Group’s present strategic focus on its home market as well as its presence in Europe. “We are pleased to have attracted the interest of a global institution like ADQ in acquiring Odeabank,” he added.

In 2022, ADQ launched a $300 million fund together with Turkiye Wealth Fund, which invests in companies developing emerging technologies or improving existing technologies in key sectors.

In the same year, ADQ acquired the leading Turkish pharmaceuticals company Birgi Mefar Group, which has since become part of ADQ’s wholly owned global life sciences holding company Arcera. In 2023, ADQ signed two memoranda of understanding with the country to deepen bilateral relations and contribute to its economic development.

ADQ’s expansive portfolio spans key sectors of Abu Dhabi’s rapidly diversifying economy, including energy and utilities, food and agriculture, healthcare and life sciences, and transport and logistics, amongst others. Its Financial Services cluster also encompasses Abu Dhabi Securities Exchange (ADX) and Wio Bank.

The transaction is subject to customary regulatory approvals, including the approvals of the Banking Regulation and Supervision Authority and the Competition Authority in Turkiye.