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Cambodia: Loan to ACLEDA Bank Plc for Promoting Financial Inclusion

Nonsovereign (Private) Project | 47914-014 Status: Active

Project Details

Project Officer
Doukidis, Doukas Private Sector Operations Department Request for information
  • Cambodia
  • Finance
Project Name Loan to ACLEDA Bank Plc for Promoting Financial Inclusion
Project Number 47914-014
Borrower/Company ACLEDA BANK PLC
Country Cambodia
Lao People's Democratic Republic
Type or Modality of Assistance
3104 Loan Ordinary capital resources USD 75.00 million Committed
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Finance / Banking systems and nonbank financial institutions - Inclusive finance - Small and medium enterprise finance and leasing

Gender Equity and Mainstreaming Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Doukidis, Doukas
Project Sponsor(s)
Description ADB will extend a senior loan of up to $75 million to ACLEDA Bank Plc.
Objectives and Scope The ADB loan will make a meaningful contribution to the bank''s growth and support of MSMEs. The proceeds of the loan will be used exclusively to support MSMEs. The assistance will enhance MSME access to longer-term finance, which is in turn critical to support poverty alleviation through income and employment generation.
Status of Development Objectives MSMEs are very important to Cambodia's economy. Limited access to finance is one of the most critical challenges MSMEs face. Demand from MSMEs for financial services, including credit, remains high. As of June 2018, total MSME loans reached $2.40 billion, exceeding the outcome target of increasing ACLEDA's MSME loan portfolio by 50%. At the end of 2017, the number of MSME borrowers stood at 300,000. This compares to a baseline of 286,293 in 2013.
Status of Operation/Construction ACLEDA Bank Plc is the largest bank in Cambodia with about 20% market share. It has a strong franchise and established presence in the country with 262 branches (as of September 2018).
Linkage to Country/Regional Strategy The loan will complement ADB''s ongoing initiatives in the financial sector, as well as the government's 10 year rolling financial sector development strategy for 2011 -2020. The government strategy''s main goal is to develop a sound financial sector that can contribute to poverty reduction by supporting economic growth and giving lower-income people greater access to finance. ADB has been supporting government reform efforts since approving its first financial sector program for the country in 2001.
Safeguard Categories
Environment FI
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
Summary of Environmental and Social Aspects
Environmental Aspects The loan is classified as category FI for impacts on the environment. Subprojects classified as category A for impacts on the environment will not be financed under ADB's loan. ACLEDA Bank Plc will apply ADB's prohibited investment activities list, ensure that loans extended using ADB funds abide by applicable national laws and regulations, comply with ADB's Safeguard Policy Statement (2009), and establish and maintain an appropriate environmental and social management system satisfactory to ADB before disbursement.
Involuntary Resettlement The loan is classified as category FI treated as C for involuntary resettlement.
Indigenous Peoples The loan is classified as category FI treated as C for indigenous peoples.
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance 26 Aug 2013
Credit Committee Meeting 06 Nov 2013
Approval 12 Dec 2013
PDS Creation Date 26 Feb 2014
Last PDS Update 22 Mar 2019

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