The Iraqi lender is keen on a conventional bank rather than a Sharia-compliant bank that it sought in a previous try, according to the bank. Trade Bank of Iraq is reconsidering entry into Turkey, which has bilateral trade worth USD 8 billion with Iraq, following an unsuccessful bid to acquire a bank in the Arabian Gulf.
The Trade Bank of Iraq made its first acquisition in its home country in 2018, through the subscription of an Islamic lenders initial public offering. Its 20% stake in the bank is valued at USD 20 million. The Islamic lender, which is expected to start operations in the first quarter of next year, will help the Trade Bank of Iraq expand into Sharia-compliant banking and improve its profitability.
Buying a Turkish bank would be the Trade Bank of Iraq’s first overseas acquisition, which will be financed from USD 350 million the lender earmarked for buying assets.
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