The International Finance Corporation (IFC), a member of the World Bank Group, has proposed to offer a loan of up to $90 million to ACLEDA Bank Plc, a commercial lender based in Phnom Penh, according to an IFC disclosure.
IFC is likely to extend up to $60 million as a subordinated loan from its own account and $30 million as a syndicated subordinated loan.
“The project is intended to support ACLEDA’s lending programme to SMEs and women-owned SMEs as well support ACLEDA’s digitalization strategy,” as mentioned.
ACLEDA Bank was founded in 1993 as a non-governmental organization for micro and small enterprise development and credit and has since developed into a microfinance firm and later, a commercial bank.
Main shareholders of ACLEDA include ACLEDA Financial Trust (26%), ACLEDA Staff Association Plc (25%), Sumitomo Mitsui Banking Corporation (18.25%), COFIBRED S.A and ORIX Corporation (12.25% each) and the rest held by Triodos Sustainable Finance Foundation, Triodos Fair Share Fund, and Triodos Microfinance Fund.
As of March 2019, the bank claims to have 262 branches across Cambodia. IFC’s investment in ACLEDA will be made throughout the country.
With the loan investment provided to ACIEDA, IFC intends to increase access to finance for the underserved SMEs and women-owned SMEs in Cambodia.
“IFC anticipates that this project contributes to improving quality of financial services by broadening access to digital financial products and improving banking service delivery via digital channels,” it stated.
IFC has been a long-term strategic partner to ACLEDA. In 2012, IFC, through the IFC Capitalisation Fund made a $40 million subordinated loan to ACLEDA Bank Plc to extend the bank’s financing to SMEs.
The following year, IFC supported ACLEDA Bank in setting up ACLEDA MFI Myanmar Co, a microfinance institution in Myanmar.
Later in 2016, IFC offered an additional loan of $50 million to ACLEDA.
IFC’s commitment in Cambodia started since 1997 and it has invested and mobilized over $950 million in the country, focusing on the financial, education, infrastructure and agribusiness services.