ISTANBUL (Reuters) – Turkey’s sovereign wealth fund (TVF) is in talks with China’s ICBC, Singapore’s wealth fund TEMASEK and the Russian Direct Investment Fund (RDIF) on cooperation in bilateral project financing, TVF acting chairman Himmet Karadag told Reuters.
The $50 billion-worth TVF was set up last year by Turkey’s government to develop and increase the value of Turkey’s strategic assets and provide resources for investment.
The government has transferred to the fund stakes worth billions of dollars of state assets, including stakes in flag carrier Turkish Airlines (THYAO.IS), major banks and fixed-line operator Turk Telekom (TTKOM.IS).
In September, President Tayyip Erdogan said the fund needed to be reorganized as its desired goals and progress had not been achieved. The fund’s chairman was removed and Karadag, Borsa Istanbul chairman, was subsequently assigned as acting chairman.
Turkey’s sovereign wealth fund wants to form a fund to finance a domestic car project, Karadag also said.
A new automobile produced entirely in Turkey is a long held target of Ankara, which has selected a consortium of five companies for its production. It is expected to be on the market by 2021.
Writing by Ezgi Erkoyun; Editing by Daren Butler