Norway’s sovereign fund invests $1.3 billion in Türkiye

Norway’s giant sovereign wealth fund, worth more than $1.5 trillion, invested over $1.31 billion in company shares in Türkiye as of the end of 2023.

According to information gathered by AA from Norges Bank, the organization in charge of overseeing the Norwegian Wealth Fund, the fund invested a portion of its holdings in 39 diversely sized businesses that operate in a range of industries last year.

The Norway Wealth Fund, the world’s largest sovereign wealth fund, invested over $1.31 billion in the shares of Turkish companies.

The fund’s portfolio included shares worth approximately $146 million in three energy companies: Turkish Petroleum Refineries AS (Tupras), Galata Wind Enerji AS, and the country’s first and largest flat steel producer, Eregli Demir ve Celik Fabrikaları (ERDEMİR).

– The biggest investment in Tupras

Refinery operator Tupras was the recipient of the largest share investment of the wealth fund in Türkiye. The fund owns a 1.3% stake in the company, with a total investment of approximately $121.7 million.

The fund invested $106.15 million in Koc Holding, $90.98 million in Birlesik Magazalar AS (BİM), $73.89 million in Akbank, $63.34 million in Turkish Airlines and $60.54 million in Aselsan.

The fund’s largest percentage stake in the Turkish portfolio is in Mavi Giyim Sanayi ve Ticaret AS, in which it holds a 4.18% interest with an investment of $32.73 million.

Yatas AS and Is Investment AS followed with the fund holding a 3% share in each. The total amount invested in the shares of these companies amounted to $3.68 million and $48.74 million, respectively.

Since 2008, the Norwegian Wealth Fund has boosted its holdings in Turkish company equities, having previously made modest investments in Türkiye since 2001.

Since 1990, the Norwegian Wealth Fund has invested in foreign stocks, bonds and real estate markets with the returns from the country’s oil and natural gas production.

Just a small percentage of the fund’s earnings are available for use by the Norwegian government and the majority must be set aside for future generations.

Last year, the fund invested in 8,859 companies in 65 countries, and in recent years the fund has invested heavily in renewable energy projects.

The market capitalization of the fund reached 15.77 trillion Norwegian kroner ($1.51 trillion) as of Dec. 31, 2023.

The Norwegian Wealth Fund is also interested in stakes in major companies operating in the transportation, chemical, automotive, software and steel sectors in Türkiye.

The fund had increased its investments in Türkiye from $485 million in 2021 to $1.22 billion in 2022.

The fund management said in a statement that, following a ‘weak’ 2022, a record-breaking $213 billion in profit was achieved last year.

• Norway's giant sovereign wealth fund
• Turkiye