Logo of Phnom Penh Post newspaper Phnom Penh Post - SMBC buys IFC Acleda shares

SMBC buys IFC Acleda shares

A motorist drives by Acleda bank on Monivong Boulevard in May.
A motorist drives by Acleda bank on Monivong Boulevard in May. Pha Lina

SMBC buys IFC Acleda shares

Japanese financial firm Sumitomo Mitsui Banking Corporation (SMBC) has agreed to buy out the International Finance Corporation’s (IFC) stake in Acleda Bank for more than $100 million.

Pending approval from the National Bank of Cambodia, the IFC – member of the World Bank Group – confirmed with the Post yesterday that it has sold its 27.6 million shares, or 12.25 per cent stake in Acleda Bank to SMBC for $110 million.

“With its financial strength and expertise, we believe Sumitomo Mitsui Banking Corp. is a strong strategic partner that can support Acleda’s continued long-term growth and contribute to Cambodia’s economic development and job creation,” Adel Meer, IFC’s financial institutions group manager for East Asia and the Pacific was quoted saying in a statement yesterday.

The share sale concludes a 15-year partnership between the IFC and Acleda Bank, and marks the end of the local banking firm’s 20-year reliance on international assistance organisations.

In Channy, president and CEO of Acleda said bringing on SMBC as a major shareholder will best help the bank target corporate clients.

“We already established a Foreign Corporate Desk with SMBC,” Channy said.

“We can provide a full package of financial services and products to our corporate customers from financing, cash management, payroll service, to international trade.”

SMBC’s purchase of 12.25 per cent of Acleda’s share capital makes the firm equal with Hong Kong-based JSH Asia Holdings and COFIBRED, a subsidiary of the French banking group BRED Banque Populaire, as primary shareholders.

Masayuki Shimura, head of Asia Pacific division and emerging markets SMBC, said his firm’s purchase was in fact an extension of an existing relationship with Acleda.

“In view of the expanding Cambodian economy, SMBC signed a memorandum of understanding for a business alliance with Acleda Bank in August 2012 and has been promoting business cooperation since then,” he said.

MOST VIEWED

  • Serious flooding across country

    The Kampong Speu provincial Committee for Disaster Management on Wednesday issued an alert after non-stop heavy rain caused widespread flooding. In Koh Kong province, authorities are working with the disaster committee and the Cambodian Red Cross to assist those affected after more than 350 homes were

  • CNRP points to King in call for vote boycott

    Leaders of the former Cambodia National Rescue Party (CNRP) have taken a new tack in their call for a boycott of the national elections later this month. They are now claiming that the people should follow the King, who is expected to abide by tradition

  • Actress’s NGO takes heat for promoting the ruling party

    An actress’s NGO which participated in an election campaign event contrary to the Law on Association and Non-Governmental Organisations (Lango) has been slammed. Chorn Chanleakena, a celebrity and the president of the Association of Artists Volunteering to Help Society, allegedly led its members in

  • Troop moves ‘won’t worry people’

    Senior officials at the Ministry of Defence and National Police said on Tuesday that riot training provided to the country’s police forces were aimed at preventing unexpected demonstrations and strikes before and after the July 29 national elections. The troop mobilisation, they said, would not