The proposed loan will be used by Maxima to finance micro clients and water, sanitation, and hygiene projects. FMO said this will contribute to decent work and economic growth activities and also support climate action.
The loan will be FMO’s first to Maxima.
“Maxima plays an important role in providing access to finance to micro and small enterprises, a critical segment in supporting job creation,” FMO disclosed.
Maxima Microfinance is one of the leading microfinance institutions in Cambodia that offers group, individual, and small business loans. It operates in eight provinces in Cambodia, has 14 branches, employs over 170 staff, and has over 6,800 active borrowers, of which roughly 91 per cent are women.
Some of the first microcredit loans that Maxima provided were to women silk weavers on the island of KOT, making it the first microfinance firm to provide loans on that island.
Even today, many of Maxima’s clients are women engaged in craft and home businesses. Some clients are involved in small trade, like buying and selling clothes, preparing and selling food, vegetable growing, while others are running tuk-tuks bought with the help of Maxima loans to sustain their families.
FMO, on the other hand, is focused on supporting sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs.
The bank has an investment portfolio of $10.4 billion, with a 28 per cent exposure to Asia. It focuses on developing markets, covering sectors such as financial institutions, energy, and agribusiness.
FMO was founded in 1970 and is a public-private partnership, with 51 per cent of its shares held by the Dutch state and 49 per cent held by commercial banks, trade unions, and other members of the private sector.
FMO has a triple-A rating from both Fitch and Standard & Poor’s.