ABA Bank secures additional 20-million dollar investment from National Bank of Canada
ABA Bank and National Bank of Canada today announced the agreement for an additional USD 20,000,000 investment. Upon completion of the transaction, National Bank of Canada will have increased its shareholding in ABA Bank from 30% to 42%. The transaction is subject to regulatory approvals.
The announcement was made earlier today during a joint press conference held at Hotel Sofitel Phokeethra Phnom Penh. The event was attended by the top-level management of both banks.
During the event, the top executives of ABA Bank and National Bank of Canada delivered their key notes with emphasis on further strengthening business ties between the two banks.
In particular, Damir Karassayev, Chairman of the Board of Directors of ABA Bank, said “ABA was just a single-branch bank with only 35 employees. The profound change in strategy initiated in 2008 and 2009 is getting its momentum. It has taken us several years to build the necessary infrastructure, expand the branch network and forge the confidence among the public.
Today, the Bank is surely on an upward trajectory, outperforming the growth rate of the banking sector.
We plan to open eight new branches this year and gradually increase the total number to 40 by 2017 to ensure the bank’s position as a strong player at the national level.
This growth would be impossible without the firm shoulder and the backing of National Bank of Canada. We are now opening a new page in the history of our partnership with National Bank of Canada”.
“National Bank of Canada is proud to become a key partner of ABA Bank. We are convinced that our expertise, experience and business network will contribute to its commercial and strategic development,” stated Louis Vachon, President and Chief Executive Officer of National Bank of Canada. “ABA’s solid organizational structure and management, its business model and governance standards, along with its expertise and understanding of the local market all contributed to our decision to invest. What’s more, ABA Bank shares National Bank’s commitment to serving and assisting clients in the small and medium-sized enterprise segment.”
National Bank of Canada acquired a 30% share of ABA Bank in 2014. The latest infusion of 20 million dollars aims to provide additional capital base necessary to maintain further growth of ABA Bank, to support its branch expansion and to increase lending to a rapidly developing private sector in Cambodia.