Padma Bank signs MoU with Delmorgan over $700m investment

The Padma Bank and USA-based investment bank Delmorgan signed a memorandum of understanding on Saturday on a potential $700-million debt and equity capital.

The MoU may involve a change in the bank’s control, said a media release on Saturday.

Padma Bank’s Managing Director and CEO Ehsan Khasru and DelMorgan President and CEO Neil Morganbesser signed the MoU. Padma Bank Chairman Chowdhury Nafeez Sarafat and DelMorgan Chairman Rob Delgardo were present at the ceremony.

Sarafat termed this event a step into the next level of excellence in the financial history of Bangladesh, saying that Padma Bank made an opportunity to enter into an international financial arena under Merger and Acquisition (M&A) transactions.

Delgado said they are looking forward to facilitating foreign investments to the opportunity presented by Padma Bank.

Morganbesser said they had 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, said, “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.”

M&A is a globally popular way of bringing two entities into one to convert themselves into a stronger entity to take significant share and interest in the market.

Globally, a 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 consequences, said the press release.