Prasac AB Loan (IFC-38235)

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
B
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
May 19, 2016
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
PRASAC MICROFINANCE INSTITUTION LIMITED
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)
$ 20.00 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)
$ 90.00 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.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 25, 2018

Disclosed by Bank Mar 18, 2016

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

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.

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.

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
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: 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/

How it works

How it works