Japan’s Sumitomo Mitsui Banking Corp. (SMBC) on Monday entered into an agreement to acquire the International Finance Corporation’s 12.25 percent stake in local bank Acleda for just over $100 million, Acleda said in a press release.
SMBC, which signed a memorandum of understanding with Acleda in 2012 to promote cooperation between the two banks, will help position Acleda in the corporate market, an area that it has yet to fully explore, said Acleda CEO In Channy.
“We are a retail bank, so we are not experts in dealing with corporate customers. This agreement will allow us to provide clients with a full package of financing, payment services, payroll services and international trade services,” he said.
The IFC, the private investment arm of the World Bank, acquired its stake in Acleda in 1999, when the bank was transforming from an NGO into a microfinance institution.
“We have successfully supported ACLEDA Bank’s transition into a commercial microfinance institution and then a full-service commercial bank,” said Adel Meer, IFC’s regional representative, in a statement.