Financial Advisor to Rupali Bank

Funding Solutions & Capital Markets, GBRW Consulting, GBRW Group, Strategic and Financial Planning

The Government of the People’s Republic of Bangladesh (GOB) adopted a strategy to implement broader banking sector reform in the country which includes the resolution of its four Nationalised Commercial Banks (NCBs).

As part of this process, GOB considered ways to improve the operations of one of its NCBs, Rupali Bank Limited, with a view to its complete privatisation.
Funded by the World Bank, the GOB hired GBRW to act as Financial Advisor (FA) as leader of a consortium which included PKF, Lloyds TSB Bank and two local consulting firms to provide advice on restructuring Rupali Bank and proposing a transaction structure for its privatisation.

On completion of the assignment, the GOB received an offer from a member of the royal family of Saudi Arabia at a multiple of net worth.

Deliverables included:

- A thorough portfolio review with a view to portfolio quality and performance, and to understand the true underlying levels of Non-Performing Loans (NPLs);

- An analysis of Rupali Bank’s business and operating model with a view to identifying gaps which could be filled to increase value;

- An investigation into the Bank’s accounting and financial control systems to identify any material divergences from reporting performance;

- The development of a detailed restructuring plan to address critical gaps which could impair value;

- Preparation of Rupali Bank for privatisation, the preparation of an information memorandum, and advice on the best method of sale;

- Marketing of the sale including approaches to potential investors; and

- Practical assistance in the sale and negotiation of contracts in the event of a transaction.