Nigeria-based Global Trust Bank has recently acquired Ugandan microlender CMF (Commercial Micro Finance Ltd) for an undisclosed price. Global Trust will assume control of CMF’s eight branches and six agencies as part of the deal, and CMF will change its name to Global Trust Bank Uganda. Global trust plans to continue CMF’s microlending operations.
“With this acquisition, we have helped CMF to achieve a long-standing desire to attain full commercial bank status needed to offer a full range of financial services to customers,” said Global Trust CEO Edigold, adding “Although the acquisition has been completed, Global Trust bank will continue to operate under the current CMF branded premises until integration processes are completed.”
The acquisition of CML follows a recent MicroCapital report that another Ugandan MFI and leading domestic microlender Uganda Microfinance Limited was acquired by Equity Bank of Kenya for USD 27 million.
Global Trust Bank is a full-service bank owned by Nigerian firms Industrial and General Insurance, and National Insurance Corporation. Financial information on Global Trust is not available.
Based in Kampala, CML is a non-bank financial institution that has provided microloans and voluntary savings services since its inception in 2000. As of December 2006, it served 11,241 active borrowers, representing a gross loan portfolio of USD 11.4 million. CML reported total assets of USD 15.1 million, a debt to equity ratio of 1,068.15 percent, and return on assets of -0.85 percent.
By Ryan Benson, Research Assistant
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