Project detail - SATHAPANA BANK PLC

SATHAPANA BANK PLC

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Who is our client

Sathapana Bank (estab. as NGO in 1995) is a leading bank in Cambodia. The Bank has developed from MFI into a bank and is currently #4 in terms of loan portfolio and #7 in terms of deposits. Sathapana has an extensive branch network of >170 branches throughout the country. Through these branches they provide access to finance to individuals, small and medium sized enterprises and corporate customers.

Funding objective

Sathapana has a mission to empower entrepreneurs and generate employment in order to improve business and living standards through its vast exposure in rural Cambodia and its increasing presence in the SME sector in urban areas, with a large impact on employment. FMO will provide a USD 20mln subordinated loan. The subordinated loan will classify as Tier 2 capital and will contribute to the stability of the balance sheet composition of Sathapana. The funds will support Sathapana in its growth ambition and their focus on MSMEs. Further, the funds will improve its stable funding and interest rate profile.

Why we fund this project

With this transaction FMO supports a financially solid and reputable client and one of the top banks in the country, to strengthen its balance sheet and reach out to the MSME sector in Cambodia. This investment is aligned with our strategy to invest in Least Developed Countries (reducing inequalities), specifically targeting SMEs. SMEs play a very important role in Cambodia and contribute ~70% to employment and ~58% to GDP. Finally, Sathapana is a long-standing client with whom we can further deepen our relationship by providing much needed subordinated debt and supporting the transition to a full-fledged bank.

Environmental and social rationale

Sathapana is classified as a Category C investment as their focus is on retail and MSMEs, with 91% of their portfolio comprised of loan sizes between USD 1,000 ? USD 250,000 and not to high-risk E&S sectors. Sathapana adheres to FMOs exclusion list and national law.

More investments

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