Logo of Phnom Penh Post newspaper Phnom Penh Post - PRASAC says its registered capital raised 33% to $0.4B

PRASAC says its registered capital raised 33% to $0.4B

Content image - Phnom Penh Post
PRASAC says its registered capital raised 33% to $0.4B. SUPPLIED

PRASAC says its registered capital raised 33% to $0.4B

Prasac Microfinance Institution Plc announced that it has increased its registered capital by one-third to 1.6 trillion riel ($400 million) as it seeks to emerge as a full-fledged commercial bank after spending many years in the pursuit.

The move is “an orchestrated effort to undergo the transformation process from an MFI [microfinance institution] to a full-fledged commercial bank, to expand loans portfolio and business operations, and to build up its strengths for serving depositors and public”, the institution said in a May 13 statement.

PRASAC president and CEO Oum Sam Oeun said in the statement: “This increase will support the institution’s growth strategy and strengthen position in the market. It will also enable us to extend our financial service outreach and diversify more financial products and services especially our digital footprints.

“We are very pleased and would like to express our sincere thanks to the National Bank of Cambodia and the Ministry of Commerce for the official approval on the increment of the registered capital,” he added.

Initially an NGO, PRASAC was wholly bought over 2020-2021 by South Korea’s Kookmin Bank Co Ltd, Seoul-listed KB Financial Group Inc’s commercial banking unit, for more than $925 million.

One share, among the exactly 300 million, is held by the bank’s local unit Kookmin Bank Cambodia Plc, PRASAC has affirmed.

Shortly after the acquisition, many top-level executives and high-profile financial veterans – including then-CEO Sim Senacheert – stepped down.

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.

As of March 31, Prasac’s total assets, gross loan portfolio and deposit balance amounted to $4.5 billion (up 21.3 per cent year-on-year), $4.0 billion and $2.7 billion, respectively, according to the statement.

On the Korea Exchange, KB Financial Group’s share price fell 700 won ($0.55) or 1.19 per cent to close at 58,000 won on May 17 for a market capitalisation of 22.51 trillion won, with 812,789 shares traded. The stock’s 52-week range is 50,100 to 66,400 won, respectively recorded on July 20 and February 11.

MOST VIEWED

  • ‘Education’ a priority traffic-law penalty

    A top National Police official on June 21 neither rejected nor confirmed the authenticity of a leaked audio message, which has gone viral on social media, on a waiver of fines for a number of road traffic-related offences. General Him Yan, deputy National Police chief in

  • Pursat Ford assembly plant opens

    The Kingdom’s first Ford assembly plant was inaugurated on June 16 in Pursat province amid rising demand for brand-new vehicles among Cambodians. The facility is seen as a game changer for the domestic automobile industry, which could bring a wave of investors seeking to cash

  • Siem Reap’s $18M zoo said to educate public, help wildlife

    Angkor Wildlife and Aquarium Co Ltd has invested $18 million in a zoo in Siem Reap province, which will be opened in October to educate and promote animal conservation as well as attract national and international tourists. Currently, the Angkor Wildlife and Aquarium is building the

  • Volunteer scheme to foster ‘virtuous’ humanitarian spirit

    A senior education official said volunteer work contributes to solidarity and promotes a virtuous humanitarian spirit among the youth and communities. Serei Chumneas, undersecretary of state at the Ministry of Education, Youth and Sport, made the comment during the opening of a training programme called “

  • $50B infrastructure plan en route

    The government’s upcoming $50 billion,10-year infrastructure master plan will provide tremendous investment opportunities for domestic and foreign entities, transport experts and economists say. Minister of Public Works and Transport Sun Chanthol revealed the plan to Japanese ambassador to Cambodia Masahiro Mikami on June 15. At

  • Chinese firms unveil preliminary results on metro, monorail for capital

    Minister of Public Works and Transport Sun Chanthol and representatives from China Road and Bridge Corp (CRBC) and its parent company, the state-owned China Communications Construction Co Ltd (CCCC), met on June 24 for talks on results of the firms’ preliminary study on a potential metro