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ADP I Fund exits CAL Bank to Arise

Africa Global Funds
Feb. 14, 2017, midnight
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Word count: 493

ADP I Fund has successfully sold its 27.7% shareholding in CAL Bank in Ghana to Arise BV, a financial services investment company whose major shareholders are Norfund, Rabobank and FMO. 

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ADP I Fund has successfully sold its 27.7% shareholding in CAL Bank in Ghana to Arise BV, a financial services investment company whose major shareholders are Norfund, Rabobank and FMO. 

The Fund is managed by DPI, a $1.1bn Africa-focused private equity firm that invests in companies benefiting from the fast-growing emerging middle class in Africa.

Eduardo Gutierrez, Partner, DPI said: “DPI is proud to have partnered with CAL Bank in expanding a leading banking franchise in Ghana over the past four years. Driven by an exceptionally strong and motivated management team, CAL Bank is well positioned to harness the significant growth opportunity in financial services in one of Africa’s largest growth markets.”

CAL Bank is one of Ghana’s leading independent banks and is active in corporate, retail and investment banking. 

CAL Bank is listed on the Ghana Stock Exchange and is the third largest bank in Ghana based on loans advanced. 

CAL Bank consistently grew profits since DPI’s investment in 2012 reporting profit after tax growth of 77% per annum from 2011 to 2015. 

DPI provided valuable input into CAL Bank’s strategic processes as well as support and strategic guidance to the Board.

Runa Alam, CEO, DPI, said: “Our investment in CAL Bank fits our core investment objective to invest in best-in-class African companies that benefit from the emerging middle class."

"We are delighted to have achieved strong equity returns for our investors even in a downturn. This is due to the strong performance of the bank. We thank the CAL Bank management team for the partnership over the last several years and for contributing to the growth and success of CAL Bank,” she said.

Arise BV was formed in 2016 as a partnership between Norfund, FMO and Rabobank to reaffirm their long-term commitment to Africa’s future development, growth potential and the local financial sector. 

Frank Adu Jr., MD at CAL Bank said: “We are delighted to have partnered with DPI, who have been supportive shareholders and have added significant value to our business over their investment period. We look forward to continuing a fruitful partnership with ARISE as the new shareholders in CAL Bank.”

The company started with a presence in over 20 countries, and $660m in assets.

“The main objective of establishing this company was to strengthen and develop effective, inclusive financial systems in Africa in order to contribute to economic growth and poverty reduction,” said Arise CEO, Deepak Malik. 

“We are excited to partner with CAL Bank. The institution has a strong track record of delivering high growth and solid performance and with the support of Arise is well-positioned to deliver future growth in Ghana, one of Africa’s core emerging economies,” he added.

IC Securities acted as financial advisor and Norton Rose Fulbright and N. Dowuona & Co. acted as legal counsel to the seller on the transaction.

Webber Wentzel and Bentsi-Enchill, Letsa & Ankomah acted as legal counsel to Arise on the transaction.

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