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Phnom Penh, Cambodia, 28 April 2015
—IFC, a member of the World Bank Group, has provided a loan of up to $10 million to PRASAC Microfinance Institution Ltd., Cambodia’s largest organization of its kind, to increase lending to micro, small and medium enterprises in the rural and agricultural sectors. The long-term funding will enable PRASAC to accelerate growth of its lending portfolio to reach $900 million with the total number of outstanding loans reaching 350,000 by the end of 2019.
Cambodia’s microfinance sector has been developing rapidly with annual growth rates of more than 30 percent in the last 20 years, benefiting more than 1.9 million borrowers. Yet, demand for credit remains huge. By directly investing in Cambodian microfinance institutions, IFC aims to expand lending to more than 845,000 borrowers, or about 48 percent of the number of borrowers served by microfinance lenders in Cambodia at present.
"This is the fourth loan IFC gave to PRASAC over the past 3 years, further supporting PRASAC’s continued efforts to offer financing to micro and smaller businesses, and low-to-middle income borrowers as well,” said Sim Senacheert, PRASAC’s Chief Executive Officer.
85 percent of borrowers in PRASAC’s current portfolio are women. Long-term capital is critical for PRASAC as it aims to reach even more small and medium enterprises, particularly in rural areas, where many do not have access to credit.
“IFC is committed to supporting commercially viable microfinance institutions in Cambodia to help them attract more long-term funding to scale up their operations and meet the growing demand for financing,” said Adel Meer, IFC’s Financial Institutions Group Manager for East Asia and the Pacific. “Our investment in PRASAC helps elevate its business to the next level, enabling the company to lend to more households and enterprises so that businesses can grow and more jobs can be created in Cambodia.”
Over the last two decades, IFC has invested more than $4 billion in around 450 microfinance projects for 250 clients in nearly 100 countries with the aim of ending poverty and promoting financial inclusion.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit
www.ifc.org
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About PRASAC
PRASAC, the largest microfinance institution in Cambodia, has boosted its operations to help the Cambodian people improve their living standards through providing loans, savings, ATM, e-Banking, local money transfer, money exchange, payroll, bill payment and mobile top up services. At the same time, PRASAC has enlarged to 180 offices nationwide. As of March 2015, PRASAC lent USD 658 million with 266,656 active borrowers, mobilized deposit of USD 354.76 million with more than 390,000 depositors and installed 87 ATMs nationwide. For more information, visit
www.prasac.com.kh
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