Turkey’s Islamic Bank Asya is selling its 40% stake in Dakar-based Tamweel Africa Holding for $37.7m to the Saudi-based Islamic Corporation for the Development of the Private Sector (ICD), after the Turkish bank suffered a run on deposits in 2013 following a political feud.

The run on Bank Asya took place in Q3 2013 after the institution became caught up in a power struggle between President Tayyip Erdogan and opposition cleric Fethullah Gulen, a former ally whom the president accuses of orchestrating a graft probe to undermine his rule.

In a show of loyalty to Erdogan, depositors including state-owned firms and institutions withdrew $1.7bn, or about a fifth of Bank Asya’s total deposits, and the bank was force to lay off 1,708 staff, close 80 branches and ultimately post a loss of $133m in the third quarter.

ICD has strong existing links to Senegal, launching the country’s first $200m sukuk in 2014, and the purchase of the stake on Tamweel Africa Holding, involved in the promotion of Islamic finance in sub-Saharan Africa, will continue to advance the Saudi bank in West Africa.

A member of the $2bn Islamic Development Bank Group established in 1999, Saudi’s ICD is a majority shareholder of Banque Islamique du Senegal, Banque Islamique du Niger and the Banque Islamique de Guinee following the acquisition of shares of Dar Al-Maal Al-Islami.

In December, ICD was named the ‘Best Development Bank’ at the Islamic Business & Finance Awards 2014 run by Dubai-based publisher CPI Financial.

At the time, ICD CEO Khaled Al-Aboodi affirmed: “ICD has made further exceptional progress this year towards building a strong and well-supported private sector, and we will continue in our ongoing endeavours to remain worthy of the trust displayed in us by our peers.”

Cengiz Onder, head of investor relations at Bank Asya, told Reuters: “We will obtain $17.6m in profit from this sale and expect this to have a positive impact on first quarter profitability.”

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