HNB to acquire 51% stake in Prime Grameen
Hatton National Bank Plc, a pioneer in microfinance in Sri Lanka has
been operating through its internationally renowned Gami Pubuduwa
program for over 25 years.
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From left: Chief Manager Planning and Investments, HNB,
Rajive Dissanayake, Chief Operating Officer, HNB, Dilshan
Rodrigo, Chairman, Prime Lands Group, B. Premalal and Deputy
Chairperson, Prime Lands Group, Sandamini Perera. |
Considering the opportunity to be a part of the upliftment of the
rural economy in line with the national vision of Sri Lanka, the Bank
was keen to further penetrate the untapped market in microfinance.
Following the evaluation of several options, the Board of Directors
of HNB decided to acquire a stake of 51% in Prime Grameen Micro Finance
Limited for Rs. 660 million, subject to obtaining regulatory clearance,
completion of a detailed due diligence and entering into a shareholder
agreement setting out the rights of HNB as the major shareholder.
Prime Grameen Micro Finance Limited incorporated in 2000, is a
flagship microfinance operator modelled on the world famous Grameen
concept and has been adapted to suit domestic conditions.
Over the years, Prime Grameen has touched the lives of over 450,000
micro enterprises through its microfinance program. Prime Grameen is
presently owned by Prime Lands (Pvt) Limited, a real estate development
company.
Prime Grameen has recorded impressive performance with an annual loan
growth of 24%, deposit growth of 33% and a return on equity of over 50%
for the financial year 2013-14 while maintaining a high quality asset
portfolio with a NPA level below 1%.
Managing Director and CEO, HNB, Jonathan Alles said, "HNB's expertise
in serving the microfinance sector for over two and a half decades
coupled with HNB's strong brand equity, will enable Prime Grameen to
accelerate growth while securing funding at attractive rates from local
and foreign sources."
"As such, we are confident that the investment in the professionally
managed Prime Grameen will further strengthen HNB's commitment as a
Group in serving the financial services sector," he said.
Chairman, Prime Grameen Micro Finance, B. Premalal said, "We at Prime
Grameen are absolutely delighted to enter into a partnership with HNB
drawing up new vistas for the micro finance industry." |
