| The World Bank Sells Off Stake in Eco Bank Transnational
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| The World Bank Group through its private sector arms, the International Finance Corporation (IFC) and the funds managed by the IFC Asset Management Company have spurned off its 14 per cent stockholding at Ecobank Transnational to Arise B.V. which has made Arise a shareholder of reference in Ecobank Transnational with a 14 per cent stake. The transaction had J. P. Morgan Securities as Sole Placement Agent and Sole Financial Advisor to IFC and the funds managed by AMC in the transaction.
Describing the transaction as a success, the Senior Advisor at the International Finance Corporation (IFC) Mr. Paolo Martelli, said that the decision to divest from Eco bank Transnational was part of IFC’S ordinary asset portfolio rotation, and that Arise B.V. is a highly reputable investment house with a strong developmental mandate for Africa. It could be recalled that the IFC invested in Eco bank for more than ten years and that investment has helped to increase access to credit for entrepreneurs and SMEs in Sub Saharan African Countries including IDA countries in which the Bank operate. That investment according to the IFC helped achieve the kind of development impact it was looking out for when it made the investment. In spite of this divestment, the IFC maintains strong commitment to the development of the Sub Saharan African Region and is continuing to invest in other projects in these countries, sources at the global investment group say.
Responding, the Chief Executive Officer of Arise B.V., Deepak Malik, described the investment as being in line with his organizations core business mandate of investing in Africa’s local prosperity and that Arise is excited to have acquired 14 per cent shareholding in Eco bank Transnational Incorporated (ETI). He noted that Arise aims to collaborate with local Financial Service Providers (FSPs) in Sub – Saharan Africa to boost economic growth through strengthening the local banking sector. This transaction with ETI will see Arise collaborate with Eco bank to advance financial inclusion on the continent, he added. Ade Ayeyemi, Chief Executive Officer of Eco bank Transnational described the transaction as a welcome development, saying that the Bank welcomes Arise as a shareholder of ETI and believe that there would be a strong synergy in the Bank’s core objectives especially in ensuring and enshrining financial inclusion and the potential for the development of our continent. He added that Ecobank must also take the opportunity to extend her deep appreciation to IFC for its commitment to and support for Ecobank in the last 10 years. “We made meaningful progress with the strong collaboration and look forward to continuing to work with IFC in other areas in the future” he added.. |
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.