Silkbank and Sudanese bank in talks for investment  

 

Pakistan's Silkbank has said it is in talks about a potential investment of up to 50 million euros ($54.5 million) by International Commercial Bank (ICB) of South Sudan.

The news bolstered shares in Silkbank up nearly 8% and comes after the Pakistani government promised the International Monetary Fund (IMF) in September that two of the country's commercial banks would be placed in resolution by May, if the first phase of their recapitalization plan did not go through by March.

Analysts have named Silkbank and Summit Bank whose capital adequacy have been below the criteria set by the State Bank of Pakistan.

The government's resolution plan could involve forced restructuring, amalgamation or an outright sale of the banks.

Silkbank has a market capitalisation of $34.9 million and 35% of its stock is listed.

Silkbank’s talks last year with Park View Enclave (Private) Limited about a possible investment ended in failure.

Silkbank said in a statement that its board of directors considered ICB's letter of intent at a meeting on Wednesday and gave approval for Silkbank management to formally pursue the potential investment.

Source: Reuters