SATHAPANA BANK PLC
Status: Approved investmentWhy disclosure?
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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
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.
What is our 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 do we fund this investment?
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.
What is the Environmental and Social categorization 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 |
|---|---|
| 2/15/2024 | USD 16.50 MLN |
| 10/31/2019 | USD 15.00 MLN |
- Region
- Asia
- Country
- Cambodia
- Sector
- Financial Institutions
- Publication date
- 5/11/2021
- Effective date
- 4/1/2022
- Total FMO financing
- USD 20.00 MLN
- Funding
- FMO NV
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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