Logo of Phnom Penh Post newspaper Phnom Penh Post - KB finishes payment for Prasac stake purchase

KB finishes payment for Prasac stake purchase

Content image - Phnom Penh Post
Prasac Microfinance Institution Ltd (Prasac) is the Kingdom’s largest microfinance deposit-taking institution (MDI) in term of total assets. HENG CHIVOAN

KB finishes payment for Prasac stake purchase

Seoul-headquartered KB Kookmin Bank (KB) on Friday finished paying $603.4 million for a 70 per cent stake in Prasac Microfinance Institution Ltd (Prasac) and plans to buy the remaining stake, the latter said in an announcement on Monday.

The purchase allows KB to include Prasac – the Kingdom’s largest microfinance deposit-taking institution (MDI) in term of total assets – in its subsidiary.

KB said it plans to buy the remaining 30 per cent stake in Prasac two years after the transaction and finalise the acquisition, local Korean-language News Briefing Cambodia reported in February.

It announced the purchase of the stake from Sri Lankan-based non-banking lender LOLC Holdings Plc in December, which received approval from the National Bank of Cambodia on January 29.

Prasac president and CEO Sim Senacheert said KB’s investment in Prasac reflects a surge in confidence among foreign investors in Cambodia and the MDI.

“Prasac management and staff would like to warmly welcome our new shareholder, KB Kookmin Bank, to drive Prasac to become more effective and efficient in the expansion of financial inclusion in Cambodia,” said Senacheert.

He said Prasac stands as a market leader with the largest operational network among MDIs, strong financial returns, and a proven record of sustainable growth in its loan portfolio and deposit balances.

At the end of last year, it reached $3.11 billion in total assets, had a loan portfolio of $2.50 billion with more than 417,000 borrowers, attained a non-performing loan ratio 0.4 percentage points lower than market levels, and had a deposit balance of $1.78 billion with more than 742,000 accounts, he said.

“The achievements of Prasac come from the strong support from clients, regulatory bodies and local authorities, as well as the dedication of Prasac management and staff to our strategy, including the delivery of diversified products and services, building a staff culture of growing together, and taking advantage of changing market conditions.

“With KB’s investment, Prasac will have more sophisticated products including digital financial technology and enhanced banking experiences to respond to customer needs for both existing and new market segments especially small and medium enterprises,” he said.

KB president and CEO Hur Yin said the bank’s acquisition of Prasac will serve as a watershed for KB Kookmin’s expansion of its retail banking network in Asia, which is part of its global strategy.

“With long-term plans to turn Prasac into a commercial bank, we hope to develop it into a leading bank by transferring KB’s strong retail capabilities and make it a base to conduct business in Southeast Asia,” he said.

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,”

  • 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

  • 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

  • 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

  • More Cambodians studying in US

    The number of Cambodian students studying at US colleges and universities in 2020-21 increased by 14.3 per cent over the previous year despite the Covid-19 pandemic, according to a recent US government report. The 2021 Open Doors report on International Educational Exchange showed that 848 Cambodian students studied

  • 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