Finnfund will provide support to the micro-finance sector in Cambodia by investing in Prasac Microfinance Institution Ltd, one of the leading microfinance institution in the country. Prasac provides banking services particularly to small and medium-sized enterprises such as small farms and grocery stores in rural and remote areas.
The vision of Prasac, founded in 1995, is to improve the living standards of the rural people contributing to sustainable economic development by being financially viable microfinance institution. Currently, Prasac employs approximately 5,895 people, and has well over 337,000 clients of which more than 90% are living in rural areas. More than 80% of the borrowers are women.
With the loan provided by Finnfund and other lenders, the company is hoping to employ 6,500 people more by 2020, and provide more than 6,000 new loans to its customers.
“This funding will enable Prasac to extend more loans to small businesses and low-to-middle-income borrowers, 85 percent of whom are women,” said Sim Senacheert, Prasac’s Chief Executive Officer.
Cambodia is an LDC country (least developed country) and one of poorest countries in Asia. Majority of the companies are small and medium-sized enterprises. The need for reachable and affordable banking services is growing fast.
The loan provided by Finnfund is worth USD 15 million. It is a part of a syndicated senior loan facility of USD 55 million, arranged by the German development finance institution DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH. This support of international investors demonstrates a strong confidence in Cambodia´s micro-finance sector and outlook for the country’s sustained economic recovery.
|Jaakko Kangasniemi, CEO, Finnfund
Markus Pietikäinen, CIO, Finnfund
Jussi Ahonen, Investment Manager, Finnfund
|Say Sony, SVP & CMM, PRASAC
Phone: (855) 23 220 102