PRASAC, the leading micro finance institution in Cambodia marked its debut in the syndicated loan market with a USD 60.5 million facility. The transaction is reported to be the single largest ever micro finance syndicated facility worldwide.
PRASAC’s extensive, large branch network combined with its rural focus ensures that proceeds are to finance a very large number of loans for micro, small and medium sized companies throughout Cambodia. This transaction will in general benefit private sector growth in Cambodia.
The multi-tranche A/B loan was led by Mandated Lead Arranger and Bookrunner FMO (the Netherlands Development Finance Company). FMO arranged USD 60.5 million of which USD 58 million has a five year tenor and USD 2.5 million a 2 year tenor. The senior unsecured issue has participations from seven investors from six different countries of which three are making their debut in Cambodia. These include the Development Bank of Austria-OeEB (USD 10m), Cordiant from Canada (USD 8m), and Turkish Demir-Halk Bank (USD 2.5m). The others are known to the Cambodian market: Norfund from Norway (USD 10m), the Austrian based Opec Fund for International Development-OFID (USD 10m), the Belgium Development Bank-BIO (USD 7.5m) and FMO (USD 12.5m).
Linda Broekhuizen, Director Financial Institutions at FMO stated: “FMO is proud to be the Mandated Lead Arranger for this landmark transaction. Through this transaction, FMO further strengthens its relationship and shows its long-term commitment to PRASAC, long-lasting and well reputed client of FMO. In addition, FMO plays an important catalytic role by introducing Cordiant, Demir-Halk Bank and OeEB to a new market, Norfund and OFID to a new client and by enhancing the cooperation with exiting lender and shareholder BIO. All lenders are pleased to be significant contributors to the foster of the Cambodian private sector.”
About PRASAC
PRASAC is the largest microfinance institution in Cambodia with a mission to provide sustainable access to financial services for rural communities and micro-enterprises in Cambodia. The company evolved from a project sponsored by the European Union and three ministries of the Cambodian government in 1995. Among its peers, PRASAC has the largest branch network that covers more than 75% of 14,000 villages in the country. PRASAC provides mainly individual loans (97%) to micro, small and medium sized companies. At the end of 2012 PRASAC had almost 2,000 employees and nearly 140,000 clients. The shareholders are BIO, Dragon Capital (Vietnam), Lanka Orix Leasing Company (Sri Lanka) and FMO. The PRASAC Staff Company owns 10%.
About FMO
FMO (the Netherlands Development Finance Company) is the Dutch development bank. FMO supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs. FMO believes a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With an investment portfolio of EUR 6.3 billion, FMO is one of the largest European bilateral private sector development banks. www.fmo.nl
Press contact:
Paul Hartogsveld, Communications Officer (PR)
T: +31 70 314 9928
