Washington, July 5, 2006
—The International Finance Corporation, the private sector arm of the World Bank Group, will provide a long-term loan of $5 million to ACLEDA Bank Plc of Cambodia. The loan will help the bank expand its lending to micro borrowers and small and medium enterprises.
ACLEDA Bank, based in Phnom Penh, provides a full range of banking services, with an emphasis on micro and small business credit. These include direct payroll deposit for businesses serving lower-income clients, savings accounts for rural clients, and money transfers that help families assist one another across provinces and regions. The bulk of its loans go to entrepreneurs, especially women, selling basic commodities such as rice and produce, or making crafts and other products for sale.
Javed Hamid, IFC’s regional director of East Asia and Pacific, said, “ACLEDA's transition from a non-profit organization to a commercial bank, its steady growth, sound reporting and management information systems, and transparent governance have made it a role model for microfinance institutions in the East Asia region.”
In Channy, ACLEDA Bank’s general manager, said the IFC loan is timely. “IFC’s funding supports our strategy to grow our client base even further and diversify our portfolio. We look forward to continuing our strong cooperation with IFC and the Mekong Private Sector Development Facility.”
Jyrki Koskelo, IFC’s director of Global Financial Markets, added, “IFC strongly supports the development of microfinance institutions in Cambodia that provide funding to the underserved market in rural areas. Through this investment, IFC aims to catalyze the development of the Cambodian banking sector by strengthening a well managed emerging bank with expertise in microlending.”
During the past six years, IFC has provided financing as well as technical assistance to help expand the bank’s lending to microenterprises and small and medium size businesses.
In 2005, ACLEDA Bank received IFC’s Client Leadership Award, in recognition of the bank’s leadership in corporate governance, community involvement, environmental and social sustainability, and its commercial success. Earlier this month, the Consultative Group to Assist the Poor—a resource center for the microfinance industry worldwide that is housed at the World Bank—honored ACLEDA Bank for meeting very high standards in financial transparency.
About ACLEDA Bank
Established in 1993, the Association of Cambodian Local Economic Development Agencies or ACLEDA, began its transition into a full-service bank in October 2000, assisted by IFC’s Mekong Private Sector Development Facility, USAID, UNDP, and other international aid agencies. With 141 branches and offices, the bank is now active in all 24 provinces and municipalities in the Kingdom of Cambodia. ACLEDA Bank is one of Cambodia’s leading financial institutions and the fourth largest in terms of assets ($124 million as of Dec. 2005).
About IFC
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 (
www.ifc.org
) 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. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications.
