The European Bank for Reconstruction and Development (EBRD) has signed an agreement to acquire a minority stake in Turkish port operator Global Ports Holding (GPH).
Under the terms of the agreement, EBRD will nominate a member for the board of GPH that operates eight ports in Montenegro, Portugal, Singapore, Spain and Turkey, reported IHS.
ERBD is expected to enhance the company’s corporate governance in addition to consolidating its position and making it more competitive in Turkey and internationally.
The proceeds from the investment will be used to finance the company’s future investments in ports across the countries where the EBRD invests.
The company’s expansion is expected to support integration among ports and create network synergies.
EBRD Transport director Sue Barrett said: "We are pleased to provide an important funding boost to Global Ports as it seeks to expand and broaden its horizons along the Mediterranean before a landmark listing."
Global Ports chairman Mehmet Kutman said: "I am honoured to follow the footsteps of the founder of GPH, Gregory M. Kiez, by welcoming the EBRD as our partner, which will support our expansion plan, especially in the cruise port arena where our company is the leading operator worldwide."
Earlier this month, GPH agreed to purchase a 30.79% stake in Maltese terminal operator Valletta Cruise Port (VCP) and the company has announced plans for an international listing in 2016-2018.
EBRD, which has been investing in Turkey since 2009, operates from Istanbul, Ankara and Gaziantep. It has invested more than €6bn in Turkey through nearly 160 projects.
Image: A cruise port in Turkey. Photo: courtesy of The European Bank for Reconstruction and Development.