Logo of Phnom Penh Post newspaper Phnom Penh Post - Sathapana borrows $15m for micro loans

Sathapana borrows $15m for micro loans

Sathapana borrows $15m for micro loans

Cambodian microfinance institution (MFI) Sathapana Limited will receive $15 million in loans to provide additional support to small- and medium-size enterprises (SMEs), which make up the vast majority of the country’s businesses.

The loan comes courtesy of German Investment and Development Company DEG, a subsidiary of Germany development bank KfW.

Speaking during the signing ceremony at the Raffles Hotel le Royal in Phnom Penh yesterday, Sathapana CEO Bun Mony said the loan has to be paid back within seven years, at an interest rate of about 6 per cent.

The money helps Sathapana expand into the SME sector by providing long-term financing, with a maximum borrowing period of up to 48 months.

“This agreement also reflects that Sathapana’s reputation and image have been improving due to outstanding performance and effective operational management, meeting high international standards,” Mony said.

As of August 1, Sathapana registered outstanding loans of $143 million in the hands of 72,600 borrowers. The number of deposit customers, or those who use the MFI like a savings account, reached 54,334. Taken together, clients stowed away $70 million.

“Sathapana Limited plans to have 175,000 clients with a total loan portfolio of $500 million in the next five years. It hopes to reach out to 250,000 clients with a total loan portfolio of $1 billion in the next 10 years,” Mony said.

The MFI operates in all provinces and cities in Cambodia, has 101 offices and employs about 2,000 people.

KfW has been implementing financial assistance projects in Cambodia since the mid-1990s, according to the German Embassy in Phnom Penh.

Herbert Jaeger, senior investment manager of the DEG Representative Office in Bangkok, said DEG stepped into the business in Cambodia more than 10 years ago. Last year, DEG provided a $15 million loan to Cambodia’s largest MFI, PRASAC.

“DEG has [supported] the private sector in Cambodia with about $100 million and we will extend further,” he said yesterday, adding: “We will add our finances to other MFIs in the future.”

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

  • 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 “

  • 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

  • $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