FMO proposes $20m loan to Cambodia’s Sathapana Bank

Phnom Penh, Cambodia. Photo: allPhoto Bangkok/unsplash

Dutch development bank FMO has proposed a $20 million funding in Sathapana Bank, one of Cambodia’s leading banks in terms of the loan portfolio, according to a disclosure.

Established in 1995, Sathapana Bank has developed from a micro-financial institution (MFI) into a bank. It is now ranked 4th in terms of the loan portfolio and 7th in terms of deposits.

Sathapana has a branch network of over 170 throughout the country. Through these branches, it provides access to finance to individuals, small and medium-sized enterprises and corporate customers.

The proposed loan will be used to support Sathapana in its growth ambition and its focus on MSMEs. Further, the funds will improve its stable funding and interest rate profile.

“With this transaction, FMO supports a financially solid and reputable client and one of the top banks in the country, to strengthen its balance sheet and reach out to the MSME sector in Cambodia. This investment is aligned with our strategy to invest in the least Developed Countries (reducing inequalities), specifically targeting SMEs,” the lender disclosed.

This will be FMO’s third funding to Sathapana Bank to date. In 2019, the Dutch lender proposed a $16.5 million investment into the Cambodian bank. Earlier, FMO also proposed a $15 million investment into Sathapana.

FMO was founded in 1970 and is a public-private partnership, with 51% of its shares held by the Dutch state and 49% by commercial banks, trade unions, and other members of the private sector.

In Cambodia, FMO last year proposed a $4 million funding in Cambodia’s Maxima Microfinance that offers group, individual, and small business loans.

It was also considering another $1.4 million commitment to Emerging Markets Investment Advisers’ (EMIA) second fund to help the latter support its portfolio in the face of COVID-19.

FMO said the increased commitment aimed to replenish the Cambodia-Laos-Myanmar Development Fund II’s (CLMDF II) follow-on reserves “fully earmarked to support existing portfolio companies.”

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.