SEF ACLEDA Bank

completed

Summary Of Project Information (SPI)Project NameCambodia: ACLEDA BankRegionEast Asia and the PacificSectorProject No009675Projected Board DateJuly 15, 1999Company NameACLEDA BankTechnical Partner and/or Major Shareholders The Primary shareholder in ACLEDA Bank will be the Association of Cambodian Local Economic Development Agencies, or ACLEDA (32%), a non-governmental organization created in 1993 to provide financial services in rural Cambodia. Other shareholders in ACLEDA Bank are expected to include ACLEDA Staff Association Ltd.(19%), IFC, DEG, Triodos Bank and an additional investor.Project Cost Including proposed IFC investment Project cost, including the acquisition of ACLEDA''s existing assets and funding required to support ACLEDA Bank''s projected portfolio growth, is estimated at approximately US$20 million. IFC would make an equity investment of up to US$750,000 and a loan of up to US$1.0 million to ACLEDA Bank.Location of project and Description of site The headquarters of ACLEDA Bank will be located in Phnom Penh and the bank will operate a network of branches across Cambodia. ACLEDA currently has 27 branches/offices in Cambodia.Description of Company and Purpose of Project ACLEDA is the largest microfinance institution in Cambodia and provides financial services to entrepreneurs and small businesses across the country. ACLEDA currently serves over 60,000 borrowers and has a portfolio of approximately US$10.0 million. ACLEDA has reached the stage where it needs to transform into a regulated microfinance bank in order to continue expanding and strengthening its operations. As such, ACLEDA will transfer substantially all of its assets and staff to ACLEDA Bank, in return for equity and subordinated debt. ACLEDA Bank will provide regulated, for-profit financial services in rural Cambodia. The creation of ACLEDA Bank will enable ACLEDA to develop a more sustainable institutional structure and to attract commercial sources of funding, including outside shareholders.Environmental Category and Issues This is a Financial Intermediary (FI) Type 1 project according to IFC''s environmental review procedure. IFC will require that ACLEDA Bank''s operations are consistent with host country requirements and with IFC''s Microfinance Exclusion List. IFC will assess ACLEDA Bank''s capability to comply with this requirement. In addition, ACLEDA Bank will be required to submit an annual environmental performance report.The is from the InfoShop.Date SPI sent to InfoShop June 15, 1999“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384