Logo of Phnom Penh Post newspaper Phnom Penh Post - Listed Prasac posts sound business in second quarter 2020

Listed Prasac posts sound business in second quarter 2020

Content image - Phnom Penh Post
Bond-listed Prasac Microfinance Institution Plc reported a sound business performance in the second quarter of this year. Hong Menea

Listed Prasac posts sound business in second quarter 2020

Bond-listed Prasac Microfinance Institution Plc reported a sound business performance in the second quarter of this year.

In its financial report filed to the Cambodia Securities Exchange (CSX) on Wednesday, it logged $3.353 billion in total assets in the second quarter, up 19.97 per cent year-on-year.

This makes it the Kingdom’s largest microfinance deposit-taking institution (MDI) in terms of total assets.

Its deposit balance increased to $1.931 billion, while its gross loan portfolio was worth $2.665 billion.

But it recorded just 66.053 billion riel in profit before income tax, a 49.07 per cent year-on-year plunge.

It said: “The drop in profit seen this year is mainly due to the Covid-19 pandemic ravaging the world and its economies, in each and every country.”

Quoted in the filing, chairman Jun Kwi-sang said the government had made great strides to bulk up the Kingdom’s socio-economic response, particularly in the financial sector which he said is considered the backbone of the national economy.

He said: “Despite this time of uncertainty, Prasac continued to grow in all key areas, including total assets, deposits and loans, profit as well as financial technology.

“We managed to smoothly carry out the ownership transfer transition and successfully listed the Prasac corporate bond on the CSX,” Jun said, referring to Seoul-headquartered KB Kookmin Bank’s (KB’s) recent 70 per cent share acquisition of Prasac for $603.4 million.

He noted that the institution raised $31.8 million through the subscription.

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.

CSX vice-chairman Ha Jong-weon said Prasac’s positive performance reflects the trust that customers have in the MDI.

He said it “showed the strong ability to pay bond coupon and repay the principal to the bond holder amid the pandemic so that the bond-listed companies still have high credibility and public trust”.

In June, Prasac signed a three- to five-year syndicated loan to the tune of $95 million with a group of banks led by Taiwan-based Taishin International Bank Co Ltd to support its lending activities.

That same month, Prasac received another $150 million loan from KB that was divided into two tranches – a seven-year $50 million subordinated loan and a three-year $100 million credit facility.

The KB funds were part of Prasac’s plan to strengthen its capital base and liquidity to support businesses growth, its executive vice-president Say Sony said then.

MOST VIEWED

  • ‘Kingdom one of safest to visit in Covid-19 era’

    The Ministry of Tourism on January 12 proclaimed Cambodia as one of the safest countries to visit in light of the Kingdom having been ranked number one in the world by the Senegalese Economic Prospective Bureau for its success in handling the Covid-19 pandemic. In rankings

  • Ministry mulls ASEAN+3 travel bubble

    The Ministry of Tourism plans to launch a travel bubble allowing transit between Cambodia and 12 other regional countries in a bid to resuscitate the tourism sector amid crushing impact of the ongoing spread of Covid-19, Ministry of Tourism spokesman Top Sopheak told The Post on

  • Kingdom accepts Chinese vaccine, PM first to get jab

    Prime Minister Hun Sen said China would offer Cambodia an immediate donation of one million doses of the Covid-19 vaccine produced by the Sinopharm company. In an audio message addressing the public on the night of January 15, he said Cambodia has accepted the offer and

  • Reeling in Cambodia’s real estate sector

    A new norm sets the scene but risks continue to play out in the background A cold wind sweeps through the streets of Boeung Trabek on an early January morning as buyers and traders engage in commerce under bright blue skies. From a distance, the

  • PM asks India for vaccine help

    Prime Minister Hun Sen is seeking assistance from India for the provision of Covid-19 vaccines as the country has produced its own vaccine which is scheduled to be rolled out to more than 300 million Indians this year. The request was made during his meeting with

  • One million Chinese Covid-19 jabs to start rolling in from February

    The government has confirmed that Covid-19 vaccines from China are set to begin arriving in Cambodia by February. This came as the Ministry of Health recorded two imported cases of Covid-19 on January 18. While calling on people to remain vigilant against the pandemic, ministry spokeswoman