IFC invests in City Bank

City Bank and International Finance Corporation, a member of the World Bank group, on Wednesday signed an agreement on IFC’s investment in City Bank’s equity shares, to hold five percent of the outstanding number of the bank’s common equity.
City Bank’s chairman Rubel Aziz, managing director and CEO, Sohail RK Hussain and IFC country manager Wendy Jo Werner signed the agreement at Westin Hotel in the city in the evening.
According the agreement, the IFC’s investment proposition will be accommodated through issuance of fresh equity of 46,560,231 shares with an issue price on each share of Taka 28.30, it was revealed at the signing ceremony.
The total value of shares to be subscribed by IFC would be Taka 131.7 crore, subject to obtaining approval of Bangladesh Securities and Exchange Commission and other relevant regulatory authorities as well as the shareholders, to comply with the necessary regulatory requirements.
City Bank’s board has also approved Convertible Loan facilities from IFC for common equity of the company, after getting approval from the respective regulatory authorities. The amount of the loan would be 20 million US dollars, it was announced at the function.
City bank managing director Sohail RK Hussain, at the function, said the strategic partnership between City bank and IFC has enabled the bank to expand its footprint in the international financial market.
He said the partnership between the two organisations will increase accessibility in the global market for City Bank, enabling it to avail larger trade facilities on better terms and condition.
This will benefit the customers of the bank, he added.
IFC country manager Wendy Jo Werner said the signing of the agreement is an important step to expanding partnership of IFC with City Bank.  She said City Bank will be one of the key strategic partners of the IFC.
City Bank’s chairman Rubel Aziz, the bank’s director and former chairman Aziz Al Kaiser and its director and founding chairman, Deen Mohammed, also spoke at the
function.
Directors of the City Bank’s board, senior country officer, IFC, Bangladesh, M Rehan Rashid and senior investment officer, IFC, Bangladesh, Ehsanul Azim, among others, were present at the function.

News Courtesy: www.newagebd.net