51160-001: Supporting Inclusive Finance through Greenfield Banking | Asian Development Bank

Cambodia: Supporting Inclusive Finance through Greenfield Banking

Nonsovereign (Private) Project | 51160-001 Status: Approved

Project Details

Project Officer
Perez, Gema Private Sector Operations Department Request for information
Country
  • Cambodia
Sector
  • Finance
 
Project Name Supporting Inclusive Finance through Greenfield Banking
Project Number 51160-001
Borrower/Company BRED Bank Cambodia
Country Cambodia
Location Nation-wide
Type or Modality of Assistance
7546 Equity Ordinary capital resources USD 10.00 million Approved
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Finance / Finance sector development

Gender Equity and Mainstreaming Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Private Sector Financial Institutions Division
Responsible ADB Officer Perez, Gema
Project Sponsor(s)
Description $10 million equity investment
Objectives and Scope Support the launch and roll-out of a new bank, BRED Bank Cambodia (BBC) supported by BRED Banque Populaire, a French regional cooperative bank with an interest and experience in promoting inclusive banking in emerging markets.
Linkage to Country/Regional Strategy Under ADB's Midterm review of Strategy 2020, ADB aims to strengthen its support for the finance sector by assisting the development of financial infrastructure, institutions, and products and services; and by promoting inclusive growth. ADB has been in partnership with the Government of Cambodia since 1999, working on finance sector reform under several programs, including the development of the 10-year rolling finance sector development strategy for 2011-2020.
Safeguard Categories
Environment FI
Involuntary Resettlement FI
Indigenous Peoples FI
Summary of Environmental and Social Aspects
Environmental Aspects The transaction's potential environment and social impacts, its risks associated with BBC's existing and/or likely future portfolio, and BBC's commitment and capacity for environmental and social management, have been assessed. BBC reported that it has not provided loans for business activities on ADB's prohibited Investment Activity List and all large corporate loan applications are assessed for compliance with national laws and regulations. BBC will apply and ensure that its borrowers abide by applicable national laws and regulations, and comply with ADB's Safeguard Policy Statement. BBC will approve an appropriate ESMS framework satisfactory to ADB before subscription. ADB will work with BBC to develop an appropriate ESMS commensurate with the environmental and social risks and impacts associated with its customers' activities within a mutually agreed time frame, and in coordination with the IFC. BBC will appoint a qualified officer to oversee environmental and social aspects of the ESMS.
Involuntary Resettlement BBC will establish and maintain an appropriate ESMS framework satisfactory to ADB before subscription. ADB will work with BBC to develop an appropriate ESMS commensurate with the land acquisition related risks and impacts associated with its borrower's activities. The ESMS will include a procedure to screen for involuntary displacement impacts on non-titled land users by borrower's business activities to ensure BBC loan proceeds are used in compliance with national law and ADB's Safeguard Policy Statement (2009).
Indigenous Peoples BBC will approve an appropriate ESMS framework satisfactory to ADB before subscription. ADB will work with BBC to develop an appropriate ESMS commensurate with the environmental and social risks and impacts associated with its borrower's activities within a mutually agreed time frame and in coordination with the other Development Finance Institution investors. The ESMS will include a procedure to screen for indigenous peoples impacts resulting from borrower business activities. The ESMS will include a procedure to screen in compliance with national law and ADB's Safeguard Policy Statement.
Stakeholder Communication, Participation, and Consultation The project presents limited opportunity for the involvement of civil society organizations.
Timetable for assistance design, processing and implementation
Concept Clearance 03 Jul 2017
Credit Committee Meeting 11 Dec 2017
Approval 09 Feb 2018
Last PDS Update 29 May 2018

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Equity Investment in BRED Bank Cambodia (BBC): FAST Report Faster Approach to Small Nonsovereign Transactions Feb 2018
Equity Investment in BRED Bank Cambodia: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Sep 2017

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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