Acleda_MFI Loan

completed

ACLEDA Bank Plc. (Acleda or the Bank), based in Phnom Penh, Cambodia’s capital, is an existing IFC client, and one of the leading financial institutions in the country, fourth largest in terms of assets, providing a full range of banking services with particular emphasis on micro and small business credit. With 141 branches and offices, the Bank is now active in 22 provinces over the Kingdom of Cambodia. In December 2003, Acleda was granted a new license by the National Bank of Cambodia to operate as a full commercial bank enabling Acleda to launch many new financial services including cash management and trade finance. With assistance from UNDP and the ILO, the Bank was originally established as Acleda NGO (Association of Cambodian Local Economic Development Agencies), in January 1993, as the national NGO for micro and small business development and credit. Major international development agencies supported the rapid expansion of Acleda. Because of the Bank’s expansion to cover the main provinces of Cambodia and its ability to continually operate profitably, Acleda NGO decided to transform itself into a commercial bank.The project is to provide a $5.0 million term loan to Acleda to support the Bank’s expansion into SME and on-lending to wholesale traders/financiers or integrators in the agribusiness sector, and licensed microfinance institutions.