Washington, DC, September 26
-- IFC has awarded its annual Client Leadership Award to ACLEDA Bank Plc, the leading microfinance institution in Cambodia. The Client Leadership Award recognizes a highly successful corporate client who, in line with IFC’s mission, has made a significant contribution to sustainable development.
“ACLEDA Bank’s evolution from a non-profit institution focusing on rural development to a first-tier commercial bank serving thousands of entrepreneurs, in both rural and urban areas, is a role model for any business, not just microfinance institutions,” said Assaad Jabre, Acting Executive Vice President of IFC. “The winner of the IFC Client Leadership Award should be a company that sets the standard for leadership in corporate governance, community involvement, environmental and social sustainability, and commercial success—ACLEDA has truly earned this award.”
With IFC’s support, ACLEDA has transformed itself from a non-governmental organization, serving 55,000 small borrowers, into Cambodia’s second largest lender. ACLEDA has expanded coverage to areas not usually served by financial institutions, reaching 131,000 active borrowers through 136 offices and branches.
Nearly 70 percent of the bank’s borrowers are women. The bulk of the bank’s loans go to entrepreneurs selling basic commodities such as rice, fish, produce, and artisanal goods.
“We are delighted to receive this award. IFC has been a valuable partner in helping us become a full-fledged commercial bank that brings critical financial services to ordinary entrepreneurs and families in urban as well as rural areas,” said In Channy, General Manager of ACLEDA Bank. “It is my firm belief that sustainable microfinance is an important tool for economic growth at the grassroots level and a powerful tool in the fight against poverty in Cambodia.”
Established in 1993, the Association of Cambodian Local Economic Development Agencies (ACLEDA) began its transition into a full-service bank in 1998, assisted by IFC’s Mekong Private Sector Development Facility—which provided technical assistance—the United States Agency for International Development, United Nations Development Program, and other international aid agencies. In 1999, ACLEDA received $150,000 funding from the Japan Trust Fund, which was used to hire an expatriate resident adviser.
IFC acquired an equity stake in ACLEDA through investments in 2000 and 2003, mobilized other investors, and provided financing to expand the bank’s lending to microenterprises. Today the bank’s loan portfolio stands at $80 million, compared to just $10 million in 1998. ACLEDA also offers savings accounts, money transfers that help families assist one another across provinces and regions, and direct payroll deposits to lower-income clients. In these ways, the bank is achieving its business goals, while committing to sustainable development.
IFC is a leader in commercial microfinance. As of June 30, 2005, IFC had invested $323 million in 69 microfinance projects in 43 countries. It helps build strong commercial microfinance institutions through its investments, partnerships, and carefully targeted technical assistance. The goal is to bring microfinance into the mainstream of the banking industry to help reduce poverty and improve people’s lives.
The International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C. IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent. Its 178 member countries provide its share capital and collectively determine its policies.
The mission of IFC is to promote sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. For more information, visit
www.ifc.org
.
