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National Bank of Canada becomes major shareholder of commercial bank in Cambodia

Xinhua, May 9, 2016 Adjust font size:

The National Bank of Canada on Monday announced an additional investment of 103 million U.S. dollars to acquire controlling interest in Advanced Bank of Asia (ABA Bank) in Cambodia, according to a joint press release.

The National Bank of Canada initially purchased a 10 percent interest in ABA Bank in 2014, and made subsequent investments that brought its stake to 42 percent in 2015. Now, the bank holds a 90 percent interest in ABA Bank, the press release said.

To date, the National Bank of Canada has invested a total of 148 million U.S. dollars in ABA Bank as part of its international growth strategy aimed at building a presence in high growth emerging markets, it added.

"National Bank of Canada is proud to become the majority shareholder of ABA Bank, a well established financial institution," said Louis Vachon, President and CEO of National Bank of Canada. "ABA Bank is positioned to take advantage of the country's long-term growth prospects and to contribute to increased utilization of financial services by individuals and commercial businesses in the region."

The press release said that it is the first time that a North American financial institution holds a majority of shares in a Cambodian bank and it will allow ABA Bank to greatly improve upon its already outstanding levels of service.

"This agreement with National Bank of Canada is one of the most significant milestones in ABA Bank's history," said Askhat Azhikhanov, CEO of ABA Bank. "The acquisition by National Bank of Canada demonstrates our strong position in the market, and our partner's confidence in the strategy and growth of ABA Bank. The latest capital injection gives us unprecedented market opportunities and the ability to deliver more to our valued customers."

Founded in 1996, ABA Bank is one of Cambodia's major financial institutions with more than 925 million U.S. dollars in assets, some 1,300 employees and 35 branches, the press release said.

Cambodia currently has 36 commercial banks, according to the National Bank of Cambodia. Enditem