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Sumitomo Mitsui to buy 12% stake in Cambodia's Acleda Bank

August 18, 2014



Sumitomo Mitsui Banking Corp. said Monday it will buy a 12.25 percent stake in Cambodia'sAcleda Bank Plc., becoming the first Japanese bank to invest in a bank in the Southeast Asian country.

The core banking unit of Sumitomo Mitsui Financial Group Inc. will acquire the stake in September for some 10 billion yen from International Finance Corp., a member of the World Bank Group, and become Acleda's largest shareholder, Sumitomo Mitsui sources said.

With the acquisition of the shares, Sumitomo Mitsui, which formed a business alliance with Acleda in 2012, aims to expand its operations in the country where an increasing number of Japanese manufacturers and other companies have been making inroads.

Sumitomo Mitsui will also dispatch an executive to the Cambodian bank.

Major Japanese banks have been expanding business overseas especially in fast-growing Southeast Asia, while they expect to see limited growth in Japan due to low interest rates and a declining population.

In March, Sumitomo Mitsui bought an additional stake in a pension savings bank in Indonesia, PT Bank Tabungan Pensiunan Nasional Tbk, raising its shareholding to 40 percent. Rival Bank of Tokyo-Mitsubishi UFJ bought a controlling stake in Thailand'sBank of Ayudhya for about 536 billion yen.

Mizuho Bank, meanwhile, has about a 15 percent stake in Vietnamese bank Vietcombank.

The three Japanese banks are also seeking to open branches in Myanmar.



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Source: Japan Economic Newswire


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