PRASAC MICROFINANCE INSTITUTION LIM
Status: Completed investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
PRASAC Microfinance Institution Ltd., an existing FMO client, is the largest microfinance institution (MFI) from Cambodia, with outstanding financial performance. Its competitive advantage derives from positive reputation in the market, a wide network and a strong, committed management team. Prasac is owned by well-known international lenders, including Dragon Capital (FMO's client in Vietnam), Oikocredit, BIO, Lanka Orix Leasing (FMO's client in Sri Lanka) and FMO, each holding 18% and with the remaining shares owned by Prasac Staff Association. With the largest branch network, it has presence in all provinces of Cambodia and it has the highest penetration coverage among all MFIs. PRASAC provides both individual loans and group loans, with individual loans currently being the main focus.
What is our funding objective?
The proposed subordinated loan will strengthen PRASAC's capital base and enable growth. PRASAC will benefit from an efficient transaction because the subordinated loan is part of a large syndicate transaction and allows PRASAC to move away from small bilateral transactions.
Why do we fund this investment?
PRASAC is a strong, well-known client of FMO. Based on sound financial performance, high quality of management, FMO decided in 2012 to become an influential shareholder in PRASAC and actively support the MFI in its transition process to holding bank status. Financing PRASAC is also in line with FMO's Financial Institutions strategy for Cambodia, which includes an expansion of FMO’s exposure primarily with existing clients and, within the MFI sector, a focus on support and guidance for PRASAC. The transaction is highly inclusive as PRASAC's focus is on the poor, unbanked population in a low-income country.
More investments
| Date | Total FMO financing |
|---|---|
| 1/2/2017 | USD 5.00 MLN |
| 9/19/2018 | USD 12.50 MLN |
- Region
- Asia
- Country
- Cambodia
- Sector
- Financial Institutions
- Effective date
- 4/2/2013
- End date
- 6/4/2020
- Total FMO financing
- USD 5.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B