$10 million equity investment
|Project Name||Supporting Inclusive Finance through Greenfield Banking|
|Borrower/Company||BRED Bank Cambodia
|Type or Modality of Assistance||
|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|
|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.|
|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||19 Sep 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.
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|Title||Document Type||Document Date|
|Equity Investment in BRED Bank Cambodia: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Sep 2017|
|Equity Investment in BRED Bank Cambodia (BBC): FAST Report||Faster Approach to Small Nonsovereign Transactions||Feb 2018|
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.
None currently available.
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