NewsLatest News on SecuritiesSumitomo Mitsui Banking Corporation Invests in ACLEDA Bank Plc.

Sumitomo Mitsui Banking Corporation Invests in ACLEDA Bank Plc.

August 18, 2014

August 18, 2014 – ACLEDA Bank Plc., the bank you can trust, the bank for the people, and the leading Cambodian commercial bank for all sectors, has announced today that Sumitomo Mitsui Banking Corporation ("SMBC"), a banking corporation organized and existing under the laws of Japan, acquires a 12.25% stakes in ACLEDA Bank Plc. from one of our current shareholders in ACLEDA Bank Plc., the International Finance Corporation ("IFC").

The International Finance Corporation (IFC) has partnered with ACLEDA Bank since 1999, when the bank was undergoing a transformation from a nongovernmental organization into a microfinance institution. As a founding shareholder, IFC has helped ACLEDA grow over the last 15 years into the largest Cambodian bank by assets by providing it with equity capital, tier-2 capital sub-debt, long-term financing, and trade finance. IFC has also advised the bank on establishing international banking procedures, strengthening its managerial systems, improving its staff capacity, and promoting small and medium enterprise financing. IFC's financing and technical support has helped ACLEDA expand its financial services to the Laos and Myanmar. IFC is a shareholder in ACLEDA MFI Myanmar Co., Ltd., a subsidiary of ACLEDA Bank Plc., that began operations in 2013 to address the significant demand for financing among Myanmar's micro, small and medium enterprises.

We have successfully supported ACLEDA Bank's transition into a commercial microfinance institution and then a full-service commercial bank, said Adel Meer, IFC's Financial Institutions Group Manager for East Asia and the Pacific. With its financial strength and expertise, we believe SMBC is a strong strategic partner that can support ACLEDA's continued long-term growth and contribute to Cambodia's economic development and job creation. We will continue to support ACLEDA Bank's operations in Cambodia, Laos, Myanmar, and other countries in the region.

Mr. Masayuki Shimura, Managing Director, Head of Asia Pacific Division and Head of Emerging Markets Business Division of SMBC, said, "In view of the expanding Cambodian economy, SMBC signed a memorandum of understanding for a business alliance with ACLEDA Bank in August 2012 and has been promoting business cooperation since then. For example, in January 2014, SMBC started providing operational support to ACLEDA Bank's newly-created, Foreign Corporate Unit, a consultation service department for ACLEDA Bank's foreign corporate clients."

This time, SMBC intends to acquire 12.25% of the shares of ACLEDA Bank and obtained approval from the National Bank of Cambodia. SMBC is truly honoured to have the opportunity to be a part of "ACLEDA". The investment is aimed to further enhance the existing collaborative relationship between the two banks. SMBC continues to be committed to meet the various needs of customer in Asia, including Cambodia, by taking advantage of the collaborative relationship with ACLEDA Bank, besides of the information network established by the Phnom Penh Representative Office of SMBC.

Dr. In Channy, President & Group Chief Executive Officer of ACLEDA Bank Plc., said, "we highly appreciate our long-term partnership with IFC and its significant support to our growth for more than a decade, and we look forward to continuing our partnership and opportunities for collaboration in the future as our bank grows. IFC has helped us to be on our own stance, and bridging us with renowned commercial strategic investor, the SMBC. By having SMBC acquiring stake in ACLEDA Bank Plc., we can combine force and opening the new chapter of international expertise and standard. And he highlighted that the whole bank team have made great efforts to build the professional bank expertise, providing financial security, services, and products with special focus on customers satisfaction of all segments of the community, until we finally have won broaden public trust locally and internationally. We are now proudly announcing that SMBC has acquired a 12.25% stake of ACLEDA Bank Plc. by transferring from one of its shareholders' stake, the IFC. This move reaffirmed our achievement to attract and bring in commercial and strategic investor, the bank with the most reputation, SMBC on board. By having SMBC investing in ACLEDA Bank Plc., it can combine its over 22 year experience banking expertise with over 100 year experience commercial bank expertise, especially international experiences so that ACLEDA Bank can reach its optimum milestones of achievement and to play its strategic role as the regional bank at the ASEAN Economic Community in the near future."

"From its establishing date till 2014, and the following years, the development of ACLEDA Bank is done continuously and sustainably, from branch and office network to electronic bank infrastructure network to keep pace with the progressive changes of the nature of the business, and the progressive financial products and services, and to accommodate the updating electronic banking financial products and services to best serve its growing substantial customers. Those electronic bank infrastructure and financial services/products include: ACLEDA Unity through mobile phones system, cash withdrawal via ACLEDA ATM, cash deposit via ACLEDA Bank's Cash Deposit Machine and ACLEDA POS is an electronic machine for doing transaction by ACLEDA Card and other bank's VISA Card to pay for goods or services safely and conveniently. Meanwhile, ACLEDA Bank Plc. has also served a new service which is the world class means of financial service, ACLEDA Internet Bank service, which is most convenient and reliable for self-service, highly secured. The costumers can do financial transactions from anywhere and at any time — 24 hours a day, 7 days a week without coming to the branches or offices," he said.

About ACLEDA Bank Plc.

ACLEDA Bank Plc. has been founded with sustainability focus for over 22 years providing exclusive financial services for all segment of the community – both private and public sectors through 252 branches and offices throughout Cambodia and has four subsidiaries such as ACLEDA Securities Plc., ACLEDA Training Center, ACLEDA Bank Lao Ltd. (has 41 branches and offices in Laos) and ACLEDA MFI Myanmar Co., Ltd. (has 6 branches and offices in Myanmar) with the bank's assets of US$ 2.76 billion by the end of July 2014.

About International Finance Corporation

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, IFC uses its capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY2013, IFC investments climbed to an all-time high of nearly US$ 25 billion, leveraging the power of the private sector to create jobs and tackle the world's most pressing development challenges. For more information, visit www.ifc.org.

About Sumitomo Mitsui Banking Corporation

SMBC is a top tier Japanese bank with total assets of US$ 1,322 billion as at March 31, 2014, a tier 1 capital ratio of 13.43% and credit ratings of A+ (S&P) and Aa3 (Moody's). SMBC has 505 domestic branches (excluding sub-branches and banking agencies) and 41 overseas branches (including sub-branches and representative offices) all over the world. Its parent company, Sumitomo Mitsui Financial Group, Inc. ("SMFG"), is listed at Tokyo, Nagoya and New York Stock Exchange and its market capitalization was around US$ 57 billion as of July 2014.

SMBC provides broad range of financial services including deposit taking, corporate finance, structured finance, securities brokering and trading, securities investment, money transfer, foreign currency exchange, corporate bond trustee services and custody services, financial futures underwriting, investment trust sales and other commercial banking activities. SMBC also boasts a formidable line up of group companies including investment banking, leasing, consumer finance, credit card and so on. As a subsidiary of SMFG, SMBC works in conjunction with other SMFG subsidiaries to provide customers with an array of superior-quality integrated financial services. For more information, please visit the bank's website at www.smfg.co.jp/english.

For further information, please contact:

Dr. SO Phonnary
Executive Vice President & Group Chief Operations Officer
E-mail: phonnary@acledabank.com.kh

Mr. PROM Visoth
Executive Vice President & Group Chief Legal Officer and Corporate Secretary
E-mail: visoth@acledabank.com.kh