NDB Capital, NDB Bank's Bangladesh joint venture investment bank, was formally launched in Dhaka, Bangladesh. NDB Capital hopes to contribute to the development of the capital markets in Bangladesh. NDB Capital was formed by the NDB Group acquiring a controlling stake in Capital Market Services, a licensed merchant bank in Bangladesh. The investment gave NDB Bank a 77.8% equity stake in the merchant bank. NDB Capital plans to introduce a range of innovative investment banking products in Bangladesh to fulfill the needs of the market.
NDB Capital will leverage on the expertise within the NDB Group, especially NDB Investment Bank (NDBIB). NDB Bank's Chairman P M Nagahawatte said "NDB Capital provides the NDB Group's investment banking business an opportunity to benefit from the larger Bangladeshi market, and also position NDB Group for future expansion in banking and financial services in a new market."
Speaking on the occasion, Nihal Welikala, Chairman, NDB Capital, stated, "Like most emerging economies, Bangladesh is seeking to increase its capital investment in order to drive higher economic growth. High and consistent growth is a necessary condition to meet popular expectations of higher incomes, more jobs and better living standards."
The Bangladesh operation would be headed by Kusal Jayawardana, seconded from NDBIB to NDB Capital. The remaining staff has been sourced primarily from Bangladesh and given on the job training at NDBIB in Colombo.