Sumitomo Mitsui Banking Corporation (SMBC), a Japanese financial services company, reportedly announced plans to purchase a 12.25-percent equity stake consisting of approximately 27.6 million shares in Acleda Bank (Acleda), a Cambodian commercial bank, for a total cost of USD 110 million. Currently the equity stake is owned by the International Finance Corporation (IFC), the private-investment arm of the US-based World Bank Group. The transaction was approved by the National Bank of Cambodia on August 12, 2014, and is scheduled to take place in September 2014.
In a statement, Mr Adel Meer, IFC’s financial institutions group manager for East Asia and the Pacific, said that “with its financial strength and expertise, we believe Sumitomo Mitsui Banking Corporation is a strong strategic partner that can support Acleda’s continued long-term growth and contribute to Cambodia’s economic development and job creation”[1].
The purchase of the equity stake by SMBC concludes a 15-year partnership between IFC and Acleda. It is expected that SMBC will help Acleda acquire corporate clients in the future.
As of June 30, 2014, Acleda reported total assets of USD 2.7 billion, loans and advances to customers of USD 1.6 billion and deposits of USD 1.7 billion. As of March 31, 2014, SMBC reported total assets of JPY 136 trillion (USD 1.3 trillion) and deposits of JPY 84 trillion. IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013.
By Alíz Crowley, Research Associate
About Acleda Bank Public Limited Company (Plc)
Acleda Bank is a public limited company based in Phnom Penh, Cambodia. It was originally founded in January 1993 as the Association of Cambodian Local Economic Development Agencies, a non-governmental organization aiming to raise the standards of living of poor people by promoting economic activities ranging from self-employment to medium-sized business. It was licensed by the National Bank of Cambodia as a “specialized bank” in October 2000 and as a “commercial bank” in December 2003, when it was renamed Acleda Bank (Acleda). It provides a range of banking services including deposits, loans, cash management and trade services. Acleda also works commercially in Laos through a subsidiary, Acleda Bank Laos (ABL), and has microfinance operations in Myanmar through a subsidiary, Acleda Microfinance Myanmar (AMM). As of June 30, 2014, in its unconsolidated, unaudited quarterly financial statement, Acleda reported total assets of USD 2.7 billion, loans and advances to customers of USD 1.6 billion and deposits of USD 1.7 billion.
About Sumitomo Mitsui Banking Corporation (SMBC)
Headquartered in Tokyo, Japan, Sumitomo Mitsui Banking Corporation (SMBC) was established in 2001 with the merger of Sakura Bank Limited and Sumitomo Bank Limited. The Sumitomo Mitsui Financial Group (SMFG) was established in 2002, when SMBC became a wholly-owned subsidiary of SMFG. In 2003, SMBC merged with Wakashio Bank Limited. As of 2014, SMBC offers a range of corporate and investment banking services including lending, foreign exchange services, trade finance, structured finance, project finance, syndicated lending, cash management and securities services. As of March 31, 2014, SMBC had approximately 22,900 employees and a network of 439 domestic and 16 overseas branches. As of March 31, 2014, SMBC reported total assets of JPY 136 trillion (USD 1.3 trillion), deposits of JPY 84 trillion (USD 810 billion) and “loans and bills discounted” of JPY 63.4 trillion (USD 610 billion).
About International Finance Corporation (IFC)
The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, offers loans, equity investments, advisory and risk mitigation services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013.
Sources and Additional Resources
[1] The Phnom Penh Post, SMBC buys IFC Acleda shares
[2] Sumitomo Mitsui Banking Corporation (SMBC), News Release
[3] Sumitomo Mitsui Banking Corporation (SMBC), Financial Highlights
MicroCapital, August 23, 2014, Government of Canada, International Finance Corporation (IFC) Support Small, Medium-sized Agricultural Enterprises in Ukraine
MicroCapital, March 1, 2014, Acleda Bank Plans to Open 12 New Branches in Myanmar, 4 in Laos
MicroCapital, February 10, 2014, Triodos Revealed as Source of Shares of Cambodia’s Acleda Bank Purchased by Orix
MicroCapital Universe Profile: Acleda Bank
MicroCapital Universe Profile: Sumitomo Mitsui Banking Corporation (SMBC)
MicroCapital Universe Profile: International Finance Corporation (IFC)
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