ACLEDA Bank (Lao) Ltd.

completed

This project comprises an IFC equity investment of LAK17.5 billion, approximately $1.83 equivalent in ACLEDA Bank Lao Ltd (ABL), a green-field banking/microfinance operation capitalized at LAK100 billion (approximately $10.4 million). ABL will operate as a commercial bank under the Commercial Banking Law in the Lao PDR, with its head office in Vientiane and branches through out the country. Its main focus will be on the low-end segments of the market, leveraging on its parent’s (ACLEDA BANK plc’s) expertise in MFI management and operation.ACLEDA Bank plc (ACLEDA) is an existing IFC client in neighboring Cambodia. ACLEDA was initially a microfinance operation and recently turned into full-fledged bank. ABL is ACLEDA’s first step in its regional expansion strategy. Under current local regulations, foreign investors are not allowed to set up MFIs in Laos, therefore, ABL will seek a full banking license. ACLEDA will be leveraging its relationship with existing strategic shareholders – IFC, KfW, FMO and Triodos Bank – in its Lao venture. Thus, the proposed shareholding is as follows: ACLEDA- 30% with 17.5% each taken by IFC, KfW, FMO and Triodos Bank.