Turkish businesses garner over $1 billion through equity expansions to settle outstanding loans
In the face of economic and market shocks earlier this year, Turkish companies have turned to the equity markets to secure much-needed funding. The significant increase in paid capital increases by Turkish companies in 2025 was primarily driven by a domestic corruption probe and new global tariffs announced by the U.S., which triggered market downturns in March and April.
The Turkish Central Bank responded to the market shock by tightening liquidity. They suspended one-week repo auctions for a month and raised interest rates by 350 basis points to 46% to stabilize the market. These tighter liquidity conditions pushed many firms to seek funding through equity markets rather than debt.
As of July 2025, Turkish companies have raised approximately ₺33.85 billion ($834.5 million) through 24 paid capital increases. This total surpasses the entire 2024 total and exceeds $1 billion when converted to dollar terms. The capital increases started slowly with only three companies by the end of March but accelerated significantly afterward.
The funds raised were primarily used to repay debt, reflecting companies’ efforts to strengthen their balance sheets amid tighter credit conditions and uncertain markets. However, some companies, like Koç Holding, also used capital increases for growth investments in key sectors such as tourism. Koç Holding notably increased the capital of its tourism subsidiary Marmaris Altinyunus from 7 million to 1.6 billion Turkish Lira in 2025, signaling a strategic investment to expand hospitality and leisure infrastructure in Turkey’s recovering tourism sector.
Several firms also cited operational financing needs, particularly to cover bank liabilities. Besiktas raised ₺4.8 billion ($118.3 million) in April, while Galatasaray raised ₺8.1 billion ($199.6 million) in July. Fenerbahce, Besiktas, and Galatasaray are among the Turkish companies that have led a wave of capital increases.
Twelve more companies have applied to the CMB for approval to launch paid-in capital increases. With the ongoing market volatility, it is expected that the trend of companies turning to the equity markets for funding will continue.
[1] Source: Various news reports and financial statements of Turkish companies [2] Source: Koç Holding's official website and financial statements
- Despite the economic and market shocks in 2025, many Turkish companies have embraced the equity markets, with a total of ₺33.85 billion ($834.5 million) raised through 24 paid capital increases.
- The surge in paid capital increases was primarily driven by a domestic corruption probe and new global tariffs, leading to market downturns in March and April.
- In response, the Turkish Central Bank tightened liquidity conditions by suspending one-week repo auctions and raising interest rates.
- Companies in Turkey, like Koç Holding, have used the funds raised for various purposes, such as repaying debt, strengthening balance sheets, and strategic investments, such as expanding tourism infrastructure.
- Notably, Koç Holding increased the capital of its tourism subsidiary Marmaris Altinyunus from 7 million to 1.6 billion Turkish Lira, a clear indication of strategic investment in Turkey's recovering tourism sector.
- Several sports teams, such as Besiktas, Galatasaray, and Fenerbahce, have also joined the wave of capital increases, citing operational financing needs, particularly to cover bank liabilities. With ongoing market volatility, it is anticipated that the trend of companies turning to the equity markets for funding will persist.
