Norway's sovereign fund invests $812 million in Turkey
Norway’s oil fund, the world's largest sovereign wealth fund, bought shares in four Turkish energy companies with investments totaling around $140 million up to the end of 2020, according to official figures from Norway’s Norges Bank Investment Management.
The giant fund made its biggest energy investment in Eregli Iron and Steel Mills with $66 million followed by an investment of $35.57 million in Turkey's refinery giant, TÜPRAŞ.
Norway’s fund holds a 0.98 percent share in TÜPRAŞ and a 0.94 percent share in Eregli.
Norges Bank, the fund manager, also invested $23.2 million in Kardemir Karabuk Iron and Steel Industry Trade company, in which the fund has a 2.61 percent share.
In the energy sector, the fourth investment was made in Petkim with $13.45 million.
By the end of December 2020, the fund had invested in 34 different Turkish companies, totaling $812 million.
The fund’s biggest investment overall was in Akbank with $73.4 million for a 1.51 percent ownership.
Fund has biggest percentage share in Türk Traktor
Norway’s fund has the largest ownership share in one of the biggest Turkish software companies in Logo with a 5.05 percent stake.
The Nordic country’s fund also invested in a variety of sectors in Turkey, including communication services, glass and chemicals production, furniture and food and drinks companies.
Norway, Europe’s largest oil producer and the world’s third-largest natural gas exporter after Russia and Qatar, has an oil fund currently worth more than $1 trillion.
The Norwegian government can spend only 3 percent of this per year, which is the expected real return on the fund, according to Norges Bank Investment Management, which was delegated by the country's parliament as the fund manager.
By the end of 2020, the fund's market value was 11,028 billion kroner.
By the end of 2020, the fund returned 10.9 percent, or 1.07 trillion kroner ($126 billion).