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.
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”).
|Private Actor 1||Private Actor 1 Role||Private Actor 1 Sector||Relation||Private Actor 2||Private Actor 2 Role||Private Actor 2 Sector|
|-||-||-||-||Bank of Ayudhya||Parent Company||-|
|-||-||-||-||Hattha Kaksekar Limited||Client||-|
|-||-||-||-||Mitsubishi UFJ Financial Group (MUFG)||Subsidiary||-|
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