IFC, a member of the World Bank Group, and funds managed by IFC Asset Management Company (AMC) have signed an agreement to invest up to $50 million through a private placement of new equity shares in Commercial Bank of Ceylon (ComBank). The investment will help the Bank continue to grow in Sri Lanka and overseas and build up resiliency in the wake of Covid-19. The move, which is subject to certain conditions including regulatory approvals, comes after IFC earlier this month extended a $50 million loan to ComBank, as part of IFC’s US$8 billion global COVID-19 fast track financing facility, which aims to help companies stay in business and preserve jobs.
This equity investment includes up to $15 million from IFC and up to $35 million mobilised from IFC Financial Institutions Growth Fund and IFC Emerging Asia Fund managed by AMC.
“This placement will benefit shareholders due to its attractive price that has great potential to stabilise the share price of the Bank and also will bring dynamism to the capital market.
This additional cash flow will also help to mitigate some of the adverse effects brought about by the pandemic outbreak and will assist the economic reviva,” said Managing Director/Chief Executive Officer, Commercial Bank of Ceylon, S. Renganathan.