Washington, July 5, 2006—The International
Finance Corporation, the private sector arm of the World Bank Group, will
provide a long-term loan of $5 million to ACLEDA Bank Plc of Cambodia.
The loan will help the bank expand its lending to micro borrowers
and small and medium enterprises.
ACLEDA Bank, based in Phnom Penh, provides a full range of banking services,
with an emphasis on micro and small business credit. These include
direct payroll deposit for businesses serving lower-income clients, savings
accounts for rural clients, and money transfers that help families assist
one another across provinces and regions. The bulk of its loans go
to entrepreneurs, especially women, selling basic commodities such as rice
and produce, or making crafts and other products for sale.
Javed Hamid, IFC’s regional director of East Asia and Pacific, said, “ACLEDA's
transition from a non-profit organization to a commercial bank, its steady
growth, sound reporting and management information systems, and transparent
governance have made it a role model for microfinance institutions in the
East Asia region.”
In Channy, ACLEDA Bank’s general manager, said the IFC loan is timely.
“IFC’s funding supports our strategy to grow our client base even
further and diversify our portfolio. We look forward to continuing
our strong cooperation with IFC and the Mekong Private Sector Development
Jyrki Koskelo, IFC’s director of Global Financial Markets, added, “IFC
strongly supports the development of microfinance institutions in Cambodia
that provide funding to the underserved market in rural areas. Through
this investment, IFC aims to catalyze the development of the Cambodian
banking sector by strengthening a well managed emerging bank with expertise
During the past six years, IFC has provided financing as well as technical
assistance to help expand the bank’s lending to microenterprises and small
and medium size businesses.
In 2005, ACLEDA Bank received IFC’s Client Leadership Award, in recognition
of the bank’s leadership in corporate governance, community involvement,
environmental and social sustainability, and its commercial success. Earlier
this month, the Consultative Group to Assist the Poor—a resource center
for the microfinance industry worldwide that is housed at the World Bank—honored
ACLEDA Bank for meeting very high standards in financial transparency.
About ACLEDA Bank
Established in 1993, the Association of Cambodian Local Economic Development
Agencies or ACLEDA, began its transition into a full-service bank in October
2000, assisted by IFC’s Mekong Private Sector Development Facility, USAID,
UNDP, and other international aid agencies. With 141 branches and offices,
the bank is now active in all 24 provinces and municipalities in the Kingdom
of Cambodia. ACLEDA Bank is one of Cambodia’s leading financial
institutions and the fourth largest in terms of assets ($124 million as
of Dec. 2005).
The International Finance Corporation is the private sector arm of the
World Bank Group and is headquartered in Washington, D.C. IFC coordinates
its activities with the other institutions of the World Bank Group but
is legally and financially independent. Its 178 member countries
provide its share capital and collectively determine its policies.
The mission of IFC (www.ifc.org)
is to promote sustainable private sector investment in developing and transition
countries, helping to reduce poverty and improve people’s lives. IFC finances
private sector investments in the developing world, mobilizes capital in
the international financial markets, helps clients improve social and environmental
sustainability, and provides technical assistance and advice to governments
and businesses. From its founding in 1956 through FY05, IFC has committed
more than $49 billion of its own funds and arranged $24 billion in syndications
for 3,319 companies in 140 developing countries. IFC’s worldwide committed
portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion
held for participants in loan syndications.