DCM HKL LCY Bond (IFC-41223)

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
Proposed
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
Jun 15, 2018
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
  • Agriculture and Forestry
  • Finance
The service or industry focus of the investment. A project can have several sectors.
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.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 8, 2018

Disclosed by Bank May 2, 2018


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Project Description

The proposed project involves IFC investment in the first local currency bond of up to US$20 million equivalent issued by Hattha Kaksekar Limited (HKL), which will help create the debt capital markets in Cambodia. HKL is an existing portfolio client of IFC and one of leading microfinance deposit taking institutions (“MDI”) in Cambodia. HKL provides loans, savings, and other inclusive financial services countrywide, in particular to women and farmers in rural areas. The funding shall be used to support the growth of the its lending program to micro borrowers. The Project will potentially be supported by the Local Currency Facility of the International Development Association (“IDA”) 18 IFC-MIGA Private Sector Window, created by the Word Bank Group to catalyze private sector investment in IDA countries, with a focus on fragile and conflict-affected states.

Investment Description
  • International Finance Corporation (IFC)
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. It obtained its MDI license in 2010, operates with an asset base of around US$691 million, serving close to 118,000 borrowers.

HKL is 100 per cent owned by the Thailand-based Bank of Ayudhya (“Krungsri”) (“BAY”), itself a 76.88 per cent owned subsidiary of the Japanese banking conglomerate, Mitsubishi UFJ Financial Group (“MUFG”).        

Contact Information

Hattha Kaksekar Limited
Hout Ieng Tong
President and CEO
iengtong.h@hkl.com.kh
www.hkl.com.kh

 

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