ACLEDA Group loan (IFC-35963)

Regions
  • East Asia and Pacific
Geographic location where the impacts of the investment may be experienced.
Countries
  • Cambodia
Geographic location 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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Feb 20, 2015
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
ACLEDA BANK PLC.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 40.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 40.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 60.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Campaign Documents
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 18, 2018

Disclosed by Bank Dec 30, 2014

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to IFC website, the proposed investment to ACLEDA Group consists of: (i) an up to US$ 110 million senior loan to ACLEDA Bank Plc., (ii) a guarantee for a US$ 8 million equivalent local currency senior loan to ACLEDA Bank Lao Ltd., and (iii) an up to US$ 6 million equivalent local currency senior loan to ACLEDA MFI Myanmar Co. Ltd. The purpose of this investment is to support ACLEDA Group’s lending programs to micro, small, and medium enterprises and to help ACLEDA Group increase lending to the agricultural sector.

The expected development impacts of the project are:

1. Contribute to the development of the financial sector in Mekong region: At present access to financial services in region and in Myanmar in particular is extremely limited. IFC's engagement with ACLEDA Group on the microfinance market will contribute to the development of financial market and improve access to finance.
2. Increase access to credit: The proposed investment in ACLEDA Group is expected to improve access to credit in the region as it will enable ACLEDA Group to provide credit to underserved micro finance, retail borrowers and SMEs, particularly in the agriculture sector.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The project with ACLEDA Bank involves a 5- year senior loan of (i) up to US$ 60 million from IFC own account with potential support from the Global Agriculture and Food Security Program (“GAFSP”); (ii) and a syndicated loan of up to US$ 30 million; and (iii) up to US$ 20 million from IFC acting in its capacity as implementing entity for the Managed Co-Lending Portfolio Program (“MCPP”). The project is intended to support ACLEDA Bank’s lending programs to MSMEs and the agricultural sector (Project ID#35963). 

The project with ACLEDA Lao involves a full credit guarantee from IFC own account with potential support from GAFSP for a 3-year US$ 8 million equivalent local currency senior loan (Project ID#36292).

The project with ACLEDA Myanmar involves a 3-year US$ 6 million equivalent local currency senior loan from IFC own account with potential support from GAFSP (Project ID#35818).

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

ACLEDA Bank Plc., a public limited company organized in Cambodia, has been a long term strategic partner for IFC in the Mekong region. Established in 1993 in Cambodia as a national NGO for micro and small enterprise development and credit, ACLEDA Bank has gradually evolved from an NGO to a microfinance institution and to a commercial bank. It is now the largest bank in Cambodia in terms of assets and loan portfolio. In 2008, ACLEDA Bank began operating in Lao PDR through its subsidiary, ACLEDA Bank Lao Ltd. (“ACLEDA Lao”), and in 2013, ACLEDA Bank launched microfinance services in Myanmar through its subsidiary, ACLEDA MFI Myanmar Co. Ltd. (“ACLEDA Myanmar”). The shareholding structure of ACLEDA Bank, ACLEDA Lao and ACLEDA Myanmar is diversified, and includes other DFIs.
IFC has made various investments in the ACLEDA Group and recently converted a loan to support the Myanmar operation to become a 15% shareholder in ACLEDA Myanmar.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Project Contact: Dr. In Channy
President and Group Managing Director, ACLEDA Bank Plc
No. 61 Preah Monivong Blvd, Sangkat Srah Chork, Khan Daun Penh, Phnom Penh, Cambodia
Telephone No.: (855)-23 998 777
Fax: (855)-23 998 666
Email Address: channy@acledabank.com.kh
Website: www.acledabank.com.kh

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/

How it works

How it works