PRASAC received debt financing of USD 2 Million from ABA
On 23 May 2012, PRASAC Microfinance Institution and Advanced Bank of Asia Limited (ABA) signed a loan agreement in amount of USD 2 million. With this kind of fund, it indicates that PRASAC is able to diversify its funding sources and to provide more loans to its clients who mainly use loans for expanding and starting businesses in the rural as well as urban area.
Mr. Sim Senacheert, CEO of PRASAC, said “PRASAC’s funds are mainly coming from the oversea funders, but now there is a trend that the local funding sources are increasing significantly and allows PRASAC to diversify its funding sources through deposit collections and debt financing from local banks. With loan from ABA, it shows that PRASAC gained more public confidences”. At the same time, PRASAC is committed to use the loan to bring more benefits to its clients by allowing them to have more capital to grow their businesses, create more jobs and especially help reduce poverty in the country.
Mr. Askhat Azhikhanov, Deputy Chief Executive Officer of ABA Bank, said “Our bank’s mission is to help Cambodian businesses and Cambodian people build a bigger and brighter future”. He added that as a truly ‘local’ bank, we see ourselves as a partner of Cambodian community as well as private sector and individuals, and through this loan we believe it will help materialize our mission.
With a remarkable growth of the industry, PRASAC currently is a leading and largest microfinance institution in Cambodia providing very competitive interest rates for both loans and savings to the clients in 24 provinces and cities in the country. As a result, PRASAC’s total loan portfolio was more than USD150 million as of December 2011 and there were 125,127 credit clients.
About ABA Bank:
ABA Bank was founded in 1996 to provide commercial banking services to a limited number of corporate clients. Since 2007 ABA Bank has broadened its scope to focus on the retail-banking sector and aim’s to provide dependable, easy-to-use and technologically advanced banking services throughout Cambodia.
ABA has been the fastest organically growing bank in Cambodia for the last two years with assets growing from $60.40 million to $201.5 million from December 2009 to December 2011.
ABA Bank currently has eleven branches across the country including 7 in Phnom Penh. In 2011 ABA became the first Cambodian financial institution to become the Asian Banking & Finance Magazine's Retail Bank of the Year.