Bond-listed Prasac Microfinance Institution Plc on June 17 said it increased its registered share capital to $300 million from $230 million to achieve a sound financial position to gain the public’s confidence.
The increase is distributed among four shareholders – KB Kookmin Bank in South Korea, The Bank of East Asia Ltd (BEA) in Hong Kong, Lanka Orix Leasing Company Plc (LOLC) in Sri Lanka, and Prasac Staff Co (PSCo), Prasac said in an announcement.
Prasac executive vice-president Say Sony said the capital increase “proves” that Prasac has a strong position to sustain its robust growth of customers, investors and public trust.
“Prasac is pleased for the official approval obtained from the National Bank of Cambodia and the Ministry of Commerce on the increment of the registered capital.
“The additional capital is the key to build more public trust and stems from our strong business growth through offering full-fledged financial services according to customers’ needs as well as the flexibility of terms and conditions of products and services and digital financial services,” he said.
Sony told The Post on June 17 that since 2008 Prasac has raised its registered capital eight times, to $3.75 million in 2008, to $20 million in 2012, to $47 million in 2014, to $72 million in 2015, to $110 million in 2016, to $168 million and then to $230 million in 2019, and now to $300 million.
As of March 31, Prasac’s total assets amounted $3.74 billion, total loan portfolio totalled $3.22 billion and outstanding deposits reached $2.15 billion, he said.
“We hope that clients will feel more secure and confident in us. The robust liquidity and capital position ensures that Prasac is able to weather any stress arising from changes in the operating environment, such as the ongoing Covid-19 situation,” Sony said.
In mid-April last year, KB finished paying $603.4 million for a 70 per cent stake in Prasac and plans to buy the remaining 30 per cent stake in Prasac two years after the transaction and finalise the acquisition.
On May 5 last year, Prasac listed a corporate bond on the Cambodia Securities Exchange, allocating 1,272,000 shares in the public offering, with a total issue amount of 127.2 billion riel ($31 million).