Logo of Phnom Penh Post newspaper Phnom Penh Post - IFC gives $10M line of credit to Prasac

IFC gives $10M line of credit to Prasac

IFC gives $10M line of credit to Prasac

The International Finance Corporation has given Prasac Microfinance, the biggest player in the MFI sector, a loan of up to $ 10 million to expand its loan portfolio, specifically to small-medium enterprises.

According to a press release yesterday this is the fourth loan IFC has given the MFI and is expected to extend Prasac’s lending portfolio to $900 million, with 350,000 loans being given out by the end of 2019.

“Our [average] loan size is around $2,500. So at least, I think, the number of clients will be 3,000 to 4,000,” said Sim Senacheert, Prasac’s chief executive officer.

Senacheert said there were no specific conditions or restrictions applied by the IFC on issuing the new loans, but that it will proportionally match Prasac’s current clientele, 85 per cent of which are women.

As of the end of March, Prasac had a loan book of $658 million with more than 266,600 borrowers, and held more than $254 million in deposits.

Adel Meer, IFC’s financial institutions group manager for East Asia and the Pacific, said the IFC, a member of the World Bank Group, was looking to support commercially viable MFIs in the Kingdom and help scale up their operations.

“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,” Meer said in a statement.

By investing in Cambodian MFIs, the IFC aims to expand lending to around 845,000 people, or 48 per ent of the borrowers who use MFIs to service their credit needs.

The loan to Prasac follows an announcement earlier this month form the IFC, and the Global Agriculture and Food Security Program (GAFSP) that they were providing Acleda Bank with a $110 million loan to finance rural and micro-businesses, with a focus on agricultural enterprises.

The IFC is to contribute $40 million to the Acleda long-term loan, with $20 million from GAFSP, $30 million from Japan’s Sumitomo Mitsui Banking Corporation, and $20 million from the IFC’s Managed Co-Lending Portfolio Platform.

MOST VIEWED

  • Prince Norodom Ranariddh passes away at 77

    Prince Norodom Ranariddh, the second son of the late King Father Norodom Sihanouk and former First Prime Minister of Cambodia, has passed away in France at the age of 77. “Samdech Krom Preah Norodom Ranariddh has passed away this morning in France just after 9am Paris-time,”

  • Rise in planned flights lifts travel hopes

    Six airlines have applied to resume flights in December, while two others have put in for additional flights and routes, according to State Secretariat of Civil Aviation (SSCA) head Mao Havannall on November 29. These account for 43 new weekly domestic and international flights in December, up 16

  • General’s gun smuggling ring busted

    The Military Police sent six military officers to court on November 22 to face prosecution for possession of 105 illegal rifles and arms smuggling, while investigators say they are still hunting down additional accomplices. Sao Sokha, deputy commander of the Royal Cambodian Armed Forces and commander of

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration

  • Is Cambodia’s travel sector in for another cheerless holiday season?

    The travel and tourism sector was heaving back to life as borders started to reopen, promising a festive vibe for the holidays and New Year. But Omicron and other Covid-related issues are threatening to close the year on a bleak note ‘Seems [like] Covid-19 won’

  • Hun Sen: Manet to be candidate for prime minister

    Prime Minister Hun Sen has reaffirmed that his oldest son Hun Manet will be his successor as Prime Minister if he is elected. Speaking during the inauguration of a new sewage treatment facility in Preah Sihanouk province on December 2, Hun Sen said Manet will be