Padma Bank, Delmorgan sign MoU over $700m investment

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

The memorandum of understanding (MoU) may involve a change in control of the bank, said a media release on Saturday.

Padma Bank Chairman Chowdhury Nafeez Sarafat and DelMorgan Chairman Rob Delgardo were present at the signing ceremony, where the MoU was kicked off by Ehsan Khasru, MD and CEO, on behalf of Padma and Neil Morganbesser, President and CEO, on behalf of DelMorgan.

Chowdhury Nafeez Sarafat termed this event as a step into the 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 M&A transactions.

Rob Delgado said, “We are excited to be working with Padma Bank. We are looking forward to facilitating foreign investments to the opportunity presented by the bank.” 

Neil Morganbesser said, “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, 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.  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.”

Merger and Acquisition (M&A) 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, 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 consequence, said the release.