Sri Lanka’s Capital Alliance enters merchant banking business in Bangladesh
Sri Lanka’s Capital Alliance (CAL), which is a leader in capital markets services, has reportedly entered into an investment and partnership agreement with Bangladesh’s BetaOne Investments Ltd.
According to local media reports, with the formalisation of this agreement and its entry to Bangladesh, CAL continues its ambitious yet resolute journey to realise its vision to be ‘The No.1 Investment Bank in Frontier Markets’.
Established in 2011, BetaOne Investments Ltd. is a leading licensed merchant bank in Bangladesh offering a wide range of financial solutions for both individual and institutional investors.
Under the agreement, CAL will own a significant equity interest in BetaOne Investments and will partner with the current group of shareholders, which includes a handful of highly reputed family businesses and professionals in Bangladesh, local media reports have stated.
“We are pleased to announce our second entry-point into Bangladesh, having obtained a TREC from the Dhaka Stock Exchange earlier this month. This is a significant milestone in CAL’s venture into other regional frontier markets,” CAL Group CEO Ajith Fernando has been quoted as saying in the media.
“Bangladesh is expected to be one of the fastest-growing economies in the world over the next decade and we are excited to be able to play a part in the evolution of its capital markets. Our partnership with BetaOne will enable us to offer high-quality financial solutions to family businesses in Bangladesh that are seeking fresh avenues for growth whilst also offering our international clientele lucrative investment opportunities in a fast-growing market. Sri Lankan companies have also historically enjoyed good business relations in Bangladesh and we hope to create greater market access for them as they continue to invest and expand globally,” Fernando has added.
“What we sought for in an investment partner was a shared purpose to elevate the benchmark for capital markets solutions in the region, founded on a strong set of values that are integral for growth and sustainability in the financial services sector. We are excited to find a like-minded partner in CAL, so that together, we can offer clients a competitive advantage at a regional scale,” BetaOne Chairman Zulfiquar Rahman has been quoted as saying.
The entry of Sri Lanka’s Capital Alliance to the merchant banking sector in Bangladesh is indicative of the strength and growth of the country’s private financial institutions. Sri Lanka’s private sector institutions have shown a growth momentum even amidst the Covid pandemic indicating the resilience of the country’s overall economy. With Sri Lanka positioning itself as a business destination in the South Asian region, a strong network of financial institutions and banking sector would add to the country’s attraction as a growing business hub. The country’s geographical positioning in the Indian Ocean, the many trade agreements and concessions enjoyed by the country as well as the business conducive environment have further boosted Sri Lanka’s business/investment opportunities.
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