After signing a merger agreement with International Leasing & Finance Limited (ILFC), Civil Bank has signed another pact to acquire Unique Finance Limited.

Civil Bank Chairman Ichchha Raj Tamang and Unique Finance Chairman Binod Bahadur Khatri signed a memorandum of understanding (MoU) to this effect.

After the merger and acquisition, the name and the current composition of the bank’s board of directors and senior management will remain the same, the bank said in a statement.

The new entity’s paid-up capital will reach Rs5.31 billion. ILFC currently has a paid-up capital Rs2 billion, while Unique Finance has Rs230 million capital.

Civil Bank CEO Kishore Maharjan said a due diligence audit will be conducted to determine the swap ratio of shares between Civil and Unique.

A proposal of acquisition will be submitted to the special general meeting scheduled to be held on August 26. He said the merger will enhance the business capacity of the bank enabling it to invest in big infrastructure and industrial projects.

The bank said it will issue bonus and right’s shares and also continue with its merger and acquisition initiatives simultaneously to hike its paid-up capital to Rs8 billion as required by the central bank’s directive.