IFC and DEG seal agreements to support Cargills Bank
Cargills Agriculture and Commercial Bank Limited (Cargills Bank),
which received its provisional banking license from the Central Bank of
Sri Lanka, has signed agreements with the International Finance
Corporation (IFC), a member of the World Bank Group as well as with DEG
- Deutsche Investitions- und Entwicklungsgesellschaftmbh, a subsidiary
of KfW. The two organizations will be investing into the Cargills Bank,
taking a 10% stake each.
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Investment agreements signed by IFC and DEG, and sponsors
Cargills (Ceylon) PLC and CT Holdings PLC being handed over
to Harris Premaratne, Managing Director, Cargills
Agriculture and Commercial Bank by Ranjit Page, Deputy
Chairman- Cargills flanked by Hubertus Pleister, Head of
DEG’s Asia Department (left) and Adam Sack, IFC Country
Manager - Sri Lanka and Maldives |
IFC and DEG's investments would bring a wealth of international
experience including operational efficiency and global best practices to
the Bank which would lead to strong financial performance and a robust
corporate governance system. This is also the first time in Sri Lanka
that IFC and DEG are simultaneously investing in a local entity.
Cargills Bank is also among a select group of banks that have succeeded
in attracting investments from these global financial institutions.
Ranjit Page, Deputy Chairman of Cargills (Ceylon) PLC, noted that the
joint investment of IFC and DEG into the bank translates into the
immediate accessibility to global expertise and experience in the
financial services domain. "This is no doubt a solid start to the
venture and we look forward to working closely with IFC and DEG to bring
global best practices to the local banking arena.
The Cargills Group has a strong foothold in the Agriculture sector
which would serve us well as we strive to build a unique
technology-driven banking model with a special focus towards theses
under-serviced sectors. This approach is one that works well with the
agenda of IFC and DEG, which are two international institutions
dedicated to the cause of development through effective engagement with
the private sector."
Adam Sack, IFC Country Manager for Sri Lanka and Maldives said, "Cargills
Bank's unique ability to tap in to the extensive network of Cargills
Food City suppliers and customers will make it easier for small business
owners and farmers to access finance. Through IFC's investment we expect
to create over 90,000 direct and indirect jobs by 2019, primarily in the
agriculture sector."
Speaking on behalf of DEG Hubertus Pleister, Head of DEG's Asia
Department said, "With its innovative business model Cargills Bank will
provide financial services also to small businesses in rural areas - an
essential precondition for successful growth of the rural economy in Sri
Lanka. This business idea fits very well to our goal to promote more
inclusive banking and in alliance with such strong and trusted partners
as Cargills Group and IFC we look confidently to the future development
of the bank."
"Cargills Bank is proud to have entered into a strategic partnership
with IFC and DEG when the bank is on the verge of commencing of
commercial operations. This means that right from the inception we will
be exposed to the best international corporate governance practices and
strategies which will undoubtedly assist in establishing a strong and
stable bank," Harris Premaratne, Managing Director/CEO of Cargills Bank
said. |
