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Who is our client

Chamroeun Microfinance Plc is a regulated microfinance institution in Cambodia. Chamroeun’s main product offering consists of small productive loans. Chamroeun currently operates in 15 provinces, has 21 branches, employs over 370 staff and has Total Assets amounting to over USD 40 million as per year end 2021.

Funding objective

FMO’s total loan of USD 10 million will be used to grow the loan book of Chamroeun. Chamroeun’s client base consists mainly of female borrowers in rural areas. As such the investment contributes to decent work, economic growth and reducing inequalities.

Why we fund this project

Although significant progress has been realized the last two decades, still a significant share of Cambodian population has no access to formal financial services. Chamroeun is committed to lifting people out of poverty by providing small uncollateralised loans for productive use and onboarding marginalised people in formal credit channels. With Chamroeun’s focus on female entrepreneurs in rural areas, underserved people are reached by partnering with Chamroeun. Furthermore, FMO brings additionality by providing scarce long-term financing and supporting the growth of Chamroeun’s reducing inequalities portfolio. This transaction will be the first DFI loan to Chamroeun.

Environmental and social rationale

Chamroeun E&S is categorized as C given the nature and size of its loans. The company does not have exposure to activities on FMO’s exclusion list or IFC-PS triggered transactions. In terms of Client Protection Principle risk FMO acknowledges the high contextual risks in the Cambodian MFI sector. In this regard it is noted that Chamroeun is a responsible MFI with a strong social mission and is SMART certified (see for more information on SMART campaign here: Loans are uncollateralized, small (average ~ USD 750), predominantly in local currency and provided for productive use to underserved segments (rural and women).

Financial Institutions
Signing date
Total FMO financing
USD 5.00 MLN
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)