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IFC $65 Million Syndicated Loan Helps Expand Microfinance Lending in Cambodia

Bangkok, Thailand, June 30, 2015 —IFC, a member of the World Bank Group, has arranged a syndicated loan of $65 million to help Cambodia’s PRASAC Microfinance Institution Ltd. – the country’s biggest microfinance provider – increase its lending to micro, small, and medium rural and agricultural enterprises, most of which are owned by women.
The syndication comprises $20 million each from Thai banks Kiatnakin Bank, Siam Commercial Bank, and TMB Bank Public Company Limited, and $5 million from ING Bank NV. This syndication supplements IFC’s $10 million own-account loan made in April to support PRASAC’s continued expansion of its micro loan portfolio.
“Expanding lending to micro borrowers and smaller businesses is a focus of PRASAC’s growth and expansion strategy,” said Sim Senacheert, PRASAC’s Chief Executive Officer. “We appreciate IFC’s support in mobilizing other international lenders to provide much-needed long-term funding for us to realize our strategy.”
Long-term funding will enable PRASAC to extend more loans to small businesses and low-to-middle-income borrowers, 85 percent of whom are women.
The loan marks the first time that a group of Thai banks has made a syndicated loan of this size to Cambodian borrowers.
Demand for loans from micro and small businesses is high in the country, where an estimated 40 percent of the population lives on less than $2 per day. By investing in and mobilizing funding for Cambodian microfinance institutions, IFC aims to expand microfinance lending beyond the 845,000 borrowers that it currently reaches through its support of four microfinance lenders in the country.
“The syndicated loan for PRASAC exemplifies our continued support to Cambodian financial institutions that are the conduits to business creation and growth, to employment, and to higher standards of living,” said Adel Meer, IFC’s Financial Institutions Group Manager for East Asia and the Pacific. “IFC is committed to helping its clients in emerging markets increase their access to long-term financing.”
IFC’s syndicated lending program has mobilized over $50 billion from more than 500 financial institutions for over 1,000 projects in more than 110 emerging markets since the program was established in 1957. As of December 30, 2014, IFC’s syndicated loan portfolio under management totaled $15.4 billion.
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
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About ING Banking Asia
ING Bank in Asia is part of ING Bank covering Commercial, Retail and Direct Banking in Asia Pacific. Globally, ING Commercial Banking has an international network in 40 countries with key positions in Structured Finance and Financial Markets. ING Commercial Banking is present and active in 13 major economies in the Asia Pacific, namely Australia, China, Hong Kong SAR, Indonesia, Japan, Malaysia, Mongolia, the Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam. ING’s presence in Asia also includes a 13.64% stake in Bank of Beijing, China; a 6.5% stake in Kotak Mahindra Bank, India; a 30.02% stake in TMB Bank, Thailand; and a 100% stake in ING Direct in Australia.
About Kiatnakin Bank
Kiatnakin Bank Plc., a member of Kiatnakin Phatra Financial Group with extensive experience of over 40 years. The bank provides full range of financial and investment services as well as offers excellent products and services to support customers’ success. Kiatnakin Bank has a strong base of capital funds, as of March 2105 reported a Tier 1 capital ratio of 14.97% and a total capital ratio (BIS ratio) of 15.36%, above the minimum requirements of 6.00% and 8.50%, respectively, set by the Bank of Thailand (BOT). Kiatnakin Bank Plc. was listed in the Stock Exchange of Thailand (SET) as "KKP." For more information, visit
PRASAC, Cambodia’s largest microfinance institution, helps Cambodian people improve their living standards by providing loans and services for savings, ATMs, e-banking, local money transfers, money exchange, payroll, bill payments and mobile top-ups. PRASAC has 180 offices nationwide. As of March 2015, PRASAC had lent $658 million to more than 266,000 active borrowers, mobilized deposits of $355 million with more than 390,000 customers, and installed 87 ATMs around the country. For more information, visit
About Siam Commercial Bank
Siam Commercial Bank PCL is one of Thailand’s leading universal banks. Established by Royal Charter in 1906 as the first Thai bank, it has the highest market capitalization among Thai financial institutions as of March 31, 2015 (Baht 605 billion). It offers the nation’s largest network of branches (1,200), exchange booths (108), and ATMs (9,713), attesting to its dominant position in the retail financial services marketplace. Its clientele includes a diverse range of corporate, SME, private, and retail customers nationwide. The Bank’s total asset size is Baht 2,688 billion as of March 31, 2015. Further information is available from the Bank's website at
About TMB
TMB is a leading Thai Bank, providing universal banking services, with a core focus on transactional banking excellence. Underpinned by “Make THE Difference” philosophy, TMB strives to always challenge and improve upon the status quo in everything the Bank does, with the ultimate goal being the transformation of banking services that better answer customer needs and increase value for all stakeholders. “Make THE Difference” ethos has been instrumental in the success of TMB’s Transformation into the Bank that allows customers to take greater control of their financial lives. For more information visit .