Padma Bank expects $700m investment thru US bank
Padma Bank signed a Memorandum of Understanding (MoU) with DelMorgan & Co - a California based investment bank in Santa Monica, Los Angeles, USA on Thursday last.
Under the MoU Padma Bank is likely to get investment of $700 million equivalent to Tk 5,900 crore from the US mediated by DelMorgan & Co, says a press release
The MoU was signed Padma Bank Managing Director and Chief Executive Officer Ehsan Khasru and DelMorgan President and CEO Neil Morganbesser on behalf of their respective organizations.
Padma Bank Chairman Chowdhury Nafeez Sarafat and DelMorgan Chairman Rob Delgardo were present.
Ehsan Khasru said the investment is expected to be available by the next four to six months. Of the investment some Tk 2,400 crore will come as equity and the rest as loan.
Padma Bank Chairman termed this event as a step into a next level of excellence in the financial history of Bangladesh. He also added that Padma Bank made an opportunity to enter into an international financial arena under Merger and Acquisition (M&A) transactions.
Merger and Acquisition is globally a popular way of bringing two entities into one for converting themselves into a stronger entity in order to take significant share and interest in the market.
Globally large number of M&A deals are frequently happening to propel the growth dynamics of business entities. The general clients of the merging banks are not impacted at all in the merger process and merger consequence.
Rob Delgado, Chairman of DelMorgan& Co., stated: "We are excited to be working with Padma Bank. We are looking forward to facilitate foreign investments to the opportunity presented by the Bank."
Neil Morganbesser, President and CEO of DelMorgan & Co., added: "We at DelMorgan have been very impressed with the quality and vision of the Padma Bank management team. We are extremely enthusiastic about the opportunity to bring our experience and worldwide reach to introduce Padma Bank to interested investors, and vice versa."
Samir Asaf Managing Director of DelMorgan & Co., added: "Bangladesh is an economy that the world is only recently discovering, but the opportunities are truly remarkable, with tremendous economic growth and a rapidly expanding financial sector. As head of Bangladesh operations for DelMorgan, I am proud and excited to be able to play a part in that growth for the country."