Sumitomo Mitsui Banking will acquire more than 12% of Cambodia's Acleda Bank as early as next month, providing a foothold for expanding Southeast Asian operations. The Japanese bank will purchase a 12.3% stake from International Finance Corp., a member of the World Bank Group, for slightly more than $96.6 million. T
Sumitomo Mitsui Banking will acquire more than 12% of Cambodia's Acleda Bank as early as next month, providing a foothold for expanding Southeast Asian operations.
The Japanese bank will purchase a 12.3% stake from International Finance Corp., a member of the World Bank Group, for slightly more than $96.6 million. The transaction would make Sumitomo Mitsui Banking the No. 1 shareholder in Acleda, Cambodia's biggest bank with 252 domestic branches.
Acleda's deposits and loan book are growing nearly 20% a year. With the economy expected to expand rapidly, Cambodia is poised for an investment boom in logistics networks and other infrastructure. And as Japanese manufacturers also make inroads, Sumitomo Mitsui Banking anticipates the need for financing will grow.
The Sumitomo Mitsui Financial Group unit formed a business alliance with Acleda in 2012. It will send in a part-time director in conjunction with the upcoming investment, aiming to strengthen the relationship and boost lending to Japanese businesses.