CIMB forms joint venture partnership

Shareholders commit US$2 million:

Ravi LADDUWAHETTY

Regional and International banking player CIMB Group Holdings of Malaysia is the first international global investment bank to be in Sri Lanka. “We are elated at the possible growth prospects here”, visiting CIMB Chief Executive Nazir Razak told Daily News Business last night.

“The equilibrium between Sri Lanka and Malaysia is so good that the capital market infrastructure of CIMB has got the partners in the arena of investment banking amalgamated with the local knowledge which is powerful in the Sri Lankan market to make the joint venture a resounding success,” he said.

He said this following the signing ceremony of the shareholders agreement and joint venture- CIMB Lanka, the new joint venture between CIMB Group Holdings of Malaysia and two Sri Lankans - Union Bank Deputy Chairman Alex Lovell and Singapore based Investment banker Reshani Dangalla at Hotel Taj Samudra yesterday.

“CIMB has the platform for investment banking and we have the knowledge and this will be an ideal marriage”, Lovell said.

Dangalla said that this was the first time that there was an investment bank which had come to stay in the country to add value to the system in contrast to other international banks who were drawing all their profits and repatriating overseas. CIMB Group holds 51 percent of the joint venture’s share capital through its wholly owned subsidiary CIMB Securities International Pte Ltd (“CIMBSI”), with the remaining 49 percent held by Lovell and Dangalla.

Shareholders have committed upto US$ 2 million for the venture.

The new entity will leverage the expertise and extensive local and regional network of the partners to provide Investment Banking advisory services to a fast growing domestic investment and capital market.

The services will include broad corporate finance advisory capabilities as well as structuring of equities and fixed income securities.

CIMB Group is Malaysia’s second largest financial services provider and one of ASEAN’s leading universal banking groups. CIMB Group is Malaysia’s second largest financial services provider and one of ASEAN’s leading universal banking groups. It offers consumer banking, investment banking, Islamic banking, asset management and insurance products and services.

Headquartered in Kuala Lumpur, the Group is now present in 8 out of 10 ASEAN nations (Malaysia, Indonesia, Thailand, Singapore, Cambodia, Brunei, Vietnam, and Myanmar). Beyond ASEAN, the Group has market presence in China, Hong Kong, Bahrain, India, Sri Lanka, the US and UK.