US$ 102 million syndicated loan for MSME financing by ACLEDA Bank Plc
ACLEDA Bank PLC based in Cambodia has received a US$ 102 million syndicated loan. The loan has a tenor of 5 years.
The loan has been provided by The Netherlands Development Finance Company FMO (who also acted as Mandated Lead Arranger and Facility Agent). In addition to the US$ 15 million provided by FMO, participants include OFID (US$ 15mln), OEeB (US$ 15mln), Proparco (US$ 15mln), Hatton National bank (US$ 15mln), National Development Bank (US$ 10mln), Symbiotics (US$ 9mln), and Swedfund (US$ 5mln). Furthermore, ACTIAM provided an additional US$ 3mln via FMO’s fund structure.
The transaction was launched as a US$ 70mln loan. However, due to the overwhelming market appetite for ACLEDA Bank, the transaction was upsized to US$ 102mln.
This landmark syndicated loan transaction brings new Lenders to Cambodia, as for some of the participants this is the first financing for a Cambodian bank.
This five-year loan will support ACLEDA in providing its clients with sustainable financing, and thanks to its extensive branch network, the facility will particularly benefit micro, small and medium entrepreneurs in rural and suburban parts of the country, where the supply of banking services is still limited and thereby actively supporting the creation of jobs in the Cambodian economy.
ACLEDA has been a client of FMO since 2000; FMO started its relationship with ACLEDA in 2000 as a shareholder (12%). After FMO sold its shares in 2009 to Jardine Matheson Group it has provided several loans over the years. Furthermore, FMO has provided loans to ACLEDA’s subsidiary in Laos (“ACLEDA Bank Lao Ltd”).
Nanno Kleiterp, CEO of FMO commented; “This facility will enable ACLEDA to further expand its business in the rural areas of Cambodia, thereby stimulating much needed job creation and economic and sustainable development of the country. Our longstanding relationship with ACLEDA continues to be fruitful and successful.”
Dr. In Channy, President & Group Managing Director of ACLEDA Bank Plc said that "This syndicated loan of US$ 102 million is very important to ACLEDA Bank Plc. as well as for micro, small, and medium enterprises in Cambodia, especially for those rural Cambodian entrepreneurs. This syndicated loan has not just given them the opportunity for broader access to finance, but it will also be best serve them in accordance to the need of their enterprises requiring longer-term financial facilities. With this syndicated loan, ACLEDA Bank Plc. will be able to reach at least 25,000 additional customers for the next three years from 2015 onwards, and generate additional employment as well as additional income to our end customers".
About FMO
FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 45 years. Our mission is to empower entrepreneurs to build a better world. We invest in sectors where we believe our contribution can have the highest long-term impact: financial institutions, energy and agribusiness. Alongside partners, we invest in the infrastructure, manufacturing and services sectors. With an investment portfolio of EUR 8 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally. www.fmo.nl
About ACLEDA
Bank Plc. ACLEDA Bank was founded by International Labour Organisation and United Nations Development Programme as a local microfinance NGO in 1993. It became a fully operational commercial bank in 2003. ACLEDA Bank quickly emerged as the market leader by mainly serving micro and small enterprises. Today, ACLEDA Bank provides general banking services to microfinance and SME (MSME) clients with 25% of the loan portfolio committed to micro/retail clients (loan size ≤ USD 10,000), 70% to small and medium enterprises (loan size > USD 10,000) and 5% to corporates (loan size> USD 1,000,000). One of the key strengths of the Bank lies in its large and solid depositor’s base, supported by 255 branches.
As of 30 June 2015, ACLEDA Bank has total assets of USD 3,603 million (FY14: USD 3,086 million), a total loan portfolio of USD 2,252 million (FY1: 1,994 million) and ACLEDA’s client base exists of 395,012 borrowers and over 1.5 million depositors. Total number of employees is 11,652. ACLEDA Bank is the first bank in Cambodia that obtained an international credit rating from Standard & Poor’s (B/Stable/B).
