HKL AB Loan (IFC-38239)

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
Hattha Kaksekar 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)
$ 50.00 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 24, 2018

Disclosed by Bank Apr 8, 2016


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Project Description

The proposed project aims to provide a senior debt package to Hattha Kaksekar Limited to support its further growth in the market, especially its lending to micro borrowers.

Expected Development Impact
The development impact of IFC's investment in the Project is expected to be high given that it will:
- Improve access to finance for productive micro-entrepreneurs, which will in turn stimulate growth, employment generation and poverty reduction.
- 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 1994 as a food security project by OCSD/OXFAM-Quebec, a Canadian organization, HKL registered as an NGO in 1996, and then gradually expanded to become a registered microfinance institution in 2001.
HKL’s shareholding structure is fragmented: Oikocredit (19.84%), Norfund (20.94%), ANMF (Triple Jump) (17.46%), HK NGO (10.42%), responsAbility (11.25%), rAP (9.71%), HK SA (9.57%), DY DAVUTH (0.81%)
Recently in January 2016, Bank of Ayudhya Pcl (BAY or Krungsri), Thailand’s fifth largest financial group and a subsidiary of Japan’s leading financial group Mitsubishi UFJ Financial Group, has acquired a 100-per-cent stake. Upon closing targeted by Quarter 2, 2016, BAY will become the sole shareholder of HKL.

The proposed investment consists of:
Up to USD 20 million of A Loan for IFC’s own account, and
Up to USD 30 million of B Loan.

Private Actors

Established in 1994 as a food security project by OCSD/OXFAM-Quebec, a Canadian organization, HKL registered as an NGO in 1996, and then gradually expanded to become a registered microfinance institution in 2001.


HKL’s shareholding structure is fragmented: Oikocredit (19.84%), Norfund (20.94%), ANMF (Triple Jump) (17.46%), HK NGO (10.42%), responsAbility (11.25%), rAP (9.71%), HK SA (9.57%), DY DAVUTH (0.81%). 


Recently in January 2016, Bank of Ayudhya Pcl (BAY or Krungsri), Thailand’s fifth largest financial group and a subsidiary of Japan’s leading financial group Mitsubishi UFJ Financial Group, has acquired a 100-per-cent stake. Upon closing targeted by Quarter 2, 2016, BAY will become the sole shareholder of HKL.

Contact Information

Mr. HOUT IENGTONG
President & Chief Executive Officer
HATTHA KAKSEKAR LIMITED (HKL), HEAD OFFICE
606, Street 271, Sangkat Phsar Doeum Thkov
Khan Chamkamorn, Phnom Penh, Cambodia
PO Box 2044, Phnom Penh 3
+ T :( 855) 23 994 304, 23 224 102,
+ E :mailto:iengtong.h@hkl.com.kh
+ W :http://www.hkl.com.kh

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