16 July 2009

NDB Group launches its operations in Bangladesh

15th July 2009, The Island

NDB Capital Limited, NDB Bank’s Bangladesh joint venture investment bank, was formally launched on the 1st of July in Dhaka, Bangladesh. NDB Capital Limited hopes to contribute to the development of the capital markets in Bangladesh. NDB Capital Limited was formed by the NDB Group acquiring a controlling stake in Capital Market Services Limited, a licensed merchant bank in Bangladesh.

The investment gave NDB Bank a 77.8% equity stake in the merchant bank. NDB Capital Limited plans to introduce a range of innovative investment banking products in Bangladesh to fulfil the needs of the market. The Company would customize globally available products to the Bangladeshi market conditions, practices and regulatory framework. NDB Group is of the view that there would be opportunities for corporate advisory services such as feasibility studies leading to fund raising, restructuring, diagnostic studies and mergers and acquisitions. The major attraction of Bangladesh for investment banking related activities is the similarity of cultural and social aspects between the two countries.

NDB Capital Limited will leverage on the expertise within the NDB Group, especially NDB Investment Bank (NDBIB). NDBIB is the premier investment bank in Sri Lanka with market leadership in both financial advisory services and debt and equity distribution. NDBIB has developed in-depth expertise in the areas of securitisations and structured finance, project finance and loans syndications, initial public offerings, corporate valuations, balance sheet restructuring and financial advisory services. NDB Bank’s Chairman P. M. Nagahawatte said "NDB Capital provides the NDB Group’s investment banking business an opportunity to benefit from the larger Bangladeshi market, and also position NDB Group for future expansion in banking and financial services in a new market".

Speaking on the occasion, Nihal Welikala, Chairman, NDB Capital Limited, stated, "Like most emerging economies, Bangladesh is seeking to increase its capital investment in order to drive higher economic growth. High and consistent growth is a necessary condition to meet popular expectations of higher incomes, more jobs and better living standards". Further, he stated, "two essential drivers of growth is the amount of capital investment and the efficiency of its usage. Bangladesh is fortunate in that it enjoys surplus national savings at present; this needs to be channeled into productive investments.

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