Project detail - SATHAPANA BANK PLC

SATHAPANA BANK PLC

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Who is our client

Sathapana Bank is currently the #6th bank in Cambodia in terms of total assets. Sathapana Bank has developed from MFI into a bank and therefore has an extensive branch network of 168 branches throughout the country. Through these branches they provide access to finance to individuals, small and medium sized enterprises and corporate customers.

Funding objective

FMO's USD 20mln will be used for a USD 40mln facility equally split between OFID and FMO. The funds will support Sathapana in its growth ambition and their focus on MSMEs and the digitization plans. The funds will also improve its stable funding and interest rate profile.

Why we fund this project

With this transaction FMO supports a long-standing, well-performing client to reach out to the MSME sector in Cambodia. Cambodia, with a GDP per capita of USD 1,379, is still on the UN Least Developed Countries list and this transaction is reduced inequalities (SDG 10). The proposed transaction is in line with FI Cambodia strategy to steer from the microfinance sector towards the banking sector. In addition, we will catalyze funds in an efficient transaction with OFID and Actiam.

Environmental and social rationale

Sathapana Bank is a E&S category C because the focus of the portfolio is on retail and MSME, the average loan size at this moment is < USD 10,000 and not to high-risk sectors. Sathapana adheres to FMOs exclusion list and national law.

More investments

Date Total FMO financing
4/1/2022 USD 20.00 MLN
7/29/2014 USD 15.00 MLN
Region
Asia
Country
Cambodia
Sector
Financial Institutions
Signing date
2/21/2019
Total FMO financing
USD 16.50 MLN
Fund
FMO
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