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

  • Kingdom’s domestic milk still cannot compete with imports

    Price competition and a lack of confidence by consumers are the main reasons the dairy market cannot compete with imports, said domestic milk producers. The large displays of imported fresh milk at the Kingdom’s supermarkets present a cumbersome obstacle for local producers, they said.

  • ‘Pesticide-laden cucumbers’ kill two, poison 150 in Banteay Meanchey

    At least two youths have died and 243 others are being treated for vomiting, diarrhoea, breathing difficulties, dizziness and muscle weakness after they ate cucumbers suspected to consist of pesticides. The incident happened on Saturday, said Banteay Meanchey provincial police chief Ath Khem. He told The

  • Three dead, 13 injured in collapse at Siem Reap pagoda

    At least three people were killed and more than 10 others injured on Monday after a dining hall under construction collapsed at Prasat Kokchak pagoda in Kokchak commune, Siem Reap province. Provincial police chief Tith Narong said Military Police, soldiers and local volunteers had successfully recovered 16

  • Forest Harmony’s $18M luxury villas break ground in Kampot

    Local and French joint-venture Forest Harmony has broken ground on its $18 million “second-home” Luxury Holiday Villas project in Kampot province. Century 21 Mekong CEO and local shareholder of the project Chrek Soknim told The Post that the project will comprise 90 villa units covering 18ha on a 97

  • China Unicom enters Cambodia

    China Unicom, the country’s largest telecoms operator, has expanded into Cambodia to build optical telecommunication pathways in the Kingdom as part of the Belt and Road Initiative (BRI). The Hong Kong-listed company officially opened its China Unicom (Cambodia) subsidiary on Monday to become the

  • PP-SHV Expressway on track for completion in early 2023

    The construction of the $1.9 billion Phnom Penh-Sihanoukville Expressway, which broke ground at the end of March, is on track to be completed by early 2023, Ministry of Public Works and Transport spokesman Vasim Sorya said on Monday. The 190km high-speed highway linking the capital to the