IFC proposes $200m loan for Cambodian commercial bank ACLEDA

Photo: Gyorgy Bakos/Unsplash

The International Finance Corporation (IFC), a member of the World Bank Group, has proposed an investment of up to $200 million in Cambodia’s public limited commercial bank ACLEDA to expand its lending programme to small and medium enterprises (SMEs) and women-owned SMEs, according to a disclosure.

The proposed investment consists of an IFC A Loan of up to $ 100 million and a syndicated loan of up to $ 100 million.

Headquartered in Phnom Penh, ACLEDA is one of Cambodia’s biggest lenders by gross loan portfolio. As of last September 2020, it had a total loan portfolio of $3.6 billion and held $4.2 billion in deposits.

The commercial bank, which has 263 branches and district offices across Cambodia to date, has been a long-term strategic partner for IFC in the Mekong region. Its female borrowers account for 55.92% of total active borrowers.

ACLEDA is listed in the Cambodian stock exchange since May 25, 2020. Its main shareholders include ACLEDA Financial Trust (25.73 %), ACLEDA Staff Association Plc. (24.74%), Sumitomo Mitsui Banking Corporation (18.06%), COFIBRED S.A (12.12%) and ORIX Corporation (12.12%). The remaining stake is held by Triodos Sustainable Finance Foundation, Triodos Fair Share Fund, and Triodos Microfinance Fund, and public shareholders.

The international lender said that the project’s development impact is anchored on increased access to finance for underserved SME segments, including women-owned SMEs.

“Beyond the project, and along with other World Bank Group efforts in the SME segment, the investment will foster greater inclusiveness of the SME financing market via innovation and competition,” IFC said in the disclosure.

IFC has previously invested in ACLEDA as well. In 2019, IFC proposed to offer a loan of up to $90 million to ACLEDA. Earlier, in 2016, it offered an additional loan of $50 million to the Cambodian bank.

Its other investments in Cambodia include a senior loan proposal of up to $50 million for Amret Plc, a microfinance deposit-taking institution in Cambodia in June 2020. Earlier, the international firm proposed a three-year senior financing package to Angkor Mikroheranhvatho (Kampuchea) Co, also known as AMK, a registered microfinance institution.

Cambodia’s $8-billion microfinance industry is touted by foreign investors as bringing financial opportunities to the country’s poor. According to a Nikkei Asia report last year, the sector continues to grow, expanding by about 30% in 2018.

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.