Introduction to Turkish Economy
Turkish companies have been working to raise funds to repay their debts. As of July 2025, they have raised ₺33.85 billion ($834.5 million) through 24 paid capital increases. This amount has already surpassed the entire 2024 total of ₺30.54 billion ($752.6 million). When looking at the dollar amount, this year’s total has exceeded $1 billion, compared to $918.4 million last year.
Market Turmoil Drives Shift to Equity Financing
The sharp increase in paid capital increases followed a domestic and global market downturn in March and April. This downturn was triggered by a corruption probe and the announcement of global tariffs by U.S. President Donald Trump. In response, the Turkish central bank suspended one-week repo auctions for a month and raised interest rates by 350 basis points to 46%. This move tightened liquidity conditions in an effort to stabilize the market, prompting many firms to turn to equity markets to secure funding.
Impact on Companies
The Turkish central bank’s actions led to a shift in how companies fund their operations. Many firms turned to equity markets to raise funds, rather than relying on debt. This shift has been driven by the need to repay existing debt and to cover operational financing needs. Companies such as Besiktas, Galatasaray, and Fenerbahce have led the way in raising funds through paid capital increases.
Companies Leading the Way
Besiktas, Galatasaray, and Fenerbahce have been among the companies leading the wave of capital increases. Besiktas raised ₺4.8 billion ($118.3 million) in April, Fenerbahce raised ₺1 billion ($24.7 million) in June, and Galatasaray raised ₺8.1 billion ($199.6 million) in July. Other companies, such as Dardanel, a seafood company, have also raised significant amounts of funds. Dardanel raised ₺1.76 billion ($43.4 million) in May.
Debt Repayment
According to company statements, the primary goal of raising funds through paid capital increases has been to repay existing debt. Several firms have also cited operational financing needs, particularly to cover bank liabilities. This suggests that companies are using the funds raised to strengthen their financial positions and reduce their debt burdens.
Conclusion
In conclusion, Turkish companies have raised significant amounts of funds through paid capital increases in 2025. This shift to equity financing has been driven by the need to repay existing debt and to cover operational financing needs. The trend is likely to continue, with 12 more companies having applied to the Capital Markets Board of Türkiye for approval to launch paid-in capital increases. As the Turkish economy continues to evolve, it will be important to monitor the impact of these actions on the country’s companies and overall economic health.
