The European Bank of Reconstruction and Development (EBRD) yesterday said it was in talks with Borsa Istanbul to acquire a 10 per cent stake in the stock exchange ahead of its planned public offering in 2016.

"Borsa Istanbul is at the heart of Turkey's ambition to become a financial centre for the wider region," Philip Bennett, EBRD's first vice-president, said.

"As a shareholder we will support Borsa Istanbul's efforts to become a leading stock exchange in terms of the number of listed companies and market capitalisation," he said. The Istanbul stock exchange sees the second quarter of 2016 as suitable for its planned initial public offering.

"We will not be engaging in any agreements that could potentially affect our public offering process," Bourse Istanbul chairman Tuncay Dinc said.-Reuters