The International Finance Corporation (IFC) has given Cambodian microfinance institute Hattha Kaksekar Ltd (HKL) a loan of up $10 million, aiming to boost access to finance to small- and medium-sized enterprises in Cambodia’s rural areas.
The additional loan is intended to help HKL, Cambodia’s fourth-largest microfinance institution, achieve its goal of doubling its loan portfolio to $504 million by 2017, according to a statement released yesterday.
HKL plans to leverage its mobile-banking services to expand its reach to farmers in Cambodia’s provinces.
“By using mobile products, customers will be able to do many financial transactions anywhere and at any time, such as mobile top-ups, bill payments, loan repayments, money transfers, and other financial services,” Hout Ieng Tong, president and CEO of HKL said in the statement.
“The disbursement of IFC’s loan today will contribute to Cambodia’s macro-economic growth because it will be used to directly support HKL’s micro and small business customers who work very hard to improve their lives and education.”
According to the statement, this is the fourth time this year that the IFC has lent to Cambodian MFIs.
“[The IFC] is a major investor worldwide in the international market and deciding to invest in HKL is good support to microfinance,” said Bun Mony, president of the Cambodia Microfinance Association.