Prasac AB Loan (IFC-38235)

Regions
  • East Asia and Pacific
Where the impacts of the investment may be experienced.
Countries
  • Cambodia
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
May 19, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
PRASAC MICROFINANCE INSTITUTION LIMITED
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 20.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 90.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 25, 2018

Disclosed by Bank Mar 18, 2016


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Project Description

According to IFC website, the project aims to provide a senior debt package to PRASAC Microfinance Institution Limited in order to support its further growth in the market, especially its lending to micro borrowers. Further, the development impact of IFC's investment in the Project is expected to be high given that it will:

1. Improve access to finance for productive micro-entrepreneurs with a strong focus in agribusiness, which will in turn stimulate growth, employment generation and poverty reduction.
2. As the Company is present in many remote areas in the country, the Project is expected to allow more individuals obtain formal financial services, such as the mobilization of savings and mobile banking.

Investment Description
  • International Finance Corporation (IFC)

Established in 1995, PRASAC was a former credit component of the PRASAC project funded by the European Union which supported the agriculture sector in the country. The Company was transformed into a licensed microfinance institution in 2004. The Company obtained a deposit taking license in 2010. PRASAC has the largest service network in the market operating over 180 offices covering all the 24 provinces in Cambodia with more than 320,000 active borrowers as of December 2015 of which approx. 82% are women.

PRASAC’s main shareholders are Dragon Capital Group, Belgian Investment Company for Developing Countries SA, FMO, and Lanka ORIX Leasing Company, each owning 22.25% of PRASAC. The remaining 11% is owned by PRASAC Staff Company, Staff association of PRASAC.

Private Actors

Established in 1995, PRASAC was a former credit component of the PRASAC project funded by the European Union which supported the agriculture sector in the country. The Company was transformed into a licensed microfinance institution in 2004. The Company obtained a deposit taking license in 2010. PRASAC has the largest service network in the market operating over 180 offices covering all the 24 provinces in Cambodia with more than 320,000 active borrowers as of December 2015 of which approx. 82% are women.

PRASAC’s main shareholders are Dragon Capital Group, Belgian Investment Company for Developing Countries SA, FMO, and Lanka ORIX Leasing Company, each owning 22.25% of PRASAC. The remaining 11% is owned by PRASAC Staff Company, Staff association of PRASAC.

Contact Information

Project Contact: SIM Senacheert, President and CEO
PRASAC Microfinance Institution Limited
Office Address: Building 212, Street 271, Sangkat Tuol Tumpung 2, Khan Chamkarmon, Phnom Penh, Cambodia
Website: http://www.prasac.com.kh
Email Address: senacheert@prasac.com.kh
Telephone No.: +855 23 22 01 02
Fax No.: +855 23 21 63 62

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/