ABL Lao Kip II (IFC-39141)

Countries
  • Laos
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
Active
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
Feb 10, 2017
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
ACLEDA BANK LAO LTD
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)
Guarantee
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 9.08 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 25, 2019

Disclosed by Bank Jan 12, 2017


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Project Description

The proposed investment to ACLEDA Bank Lao Limited, a long term partner of IFC in Lao PDR, consists of a guarantee of up to US$9.2 million equivalent in Lao Kip of a senior loan provided by a third party lender. The purpose of the loan is to support ACLEDA Lao’s lending program to small, and medium enterprises (“SMEs”) in Lao PDR, including to women-owned or women-run businesses.

Investment Description
  • International Finance Corporation (IFC)

The project with ACLEDA Lao involves a full credit guarantee from IFC own account with potential support from the Global SME Finance Facility and the Women Entrepreneurs Opportunity Facility for a 5-year US$9 million equivalent local currency senior loan.

Private Actors

According to IFC:

ACLEDA Lao is a 100% owned subsidiary of ACLEDA Cambodia Bank Plc. (“ACLEDA Bank”) with 99.9% direct holding by ACLEDA Bank and 0.1% holding by ACLEDA Institute of Business, another fully owned subsidiary of ACLEDA Bank. ACLEDA Bank, a public limited company organized in Cambodia and a long term strategic partner for IFC in the Mekong region, was established in 1993 as a national NGO and has now evolved to be the largest bank in Cambodia in terms of assets and loan portfolio. In 2008, ACLEDA Bank expanded its operation to Lao PDR and established ACLEDA Lao as a subsidiary of which IFC was also one of the founding shareholders. In 2013, ACLEDA Bank exercised its call option and bought back the shares of all other shareholders and turned ACELDA Lao into a wholly-owned subsidiary.

Contact Information

ACLEDA Bank Lao Ltd.,
Mr. Narin PHON
Managing Director & CEO
(856-21) 260 567 / 264 994 / 264 998 (Ext. 301)
narin@acledabank.com.la
# 372, Unit 21, Phonesavanh Neua Village, Sisattanak District, Vientiane Capital, Lao PDR
http://www.acledabank.com.la/

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/