IFC proposes to extend $90m loan to Cambodia’s ACLEDA Bank

The Mekong River flows from China through Myanmar, Cambodia, Laos, Thailand and Vietnam (Photo: Internet Archive)

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.

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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.