Sampath discussing IFC investment

Sampath Bank will most likely have to go for a new share issue if the bank and the International Finance Corporation (IFC) agree to the latter investing in the bank but it is unclear as to how the World Bank-affiliate funding arm will bring in their equity.

“The IFC is in discussion with Sampath Bank board of directors regarding a possible investment in the bank and Sampath will have to go for a new share issue if both parties agree and getting the necessary internal and regulatory permission,” Anil Amarasuriya, Managing Director, Sampath Bank told The Sunday Times FT, adding that the details are not as yet finalised.

He said that the investment is for future expansion but the details are not as yet finalised.

“The retention of profits is not sufficient at present for our expansion. Therefore we want to increase our scope for expansion and we will be happy to partner with an entity in the stature of IFC to bring in the necessary capital for this purpose,” he added.