FMO proposes $4m loan to Cambodian microfinance firm Maxima

Photo: Gyorgy Bakos/Unsplash

Dutch development bank FMO has proposed a $4 million funding in Maxima Microfinance, a regulated microfinance institution in Cambodia.

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.

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.

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.