IFC Helps Amret Co. Expand Financing for Rural Enterprises and Agribusinesses in Cambodia
Phnom Penh, Cambodia, February 17, 2016—IFC, a member of the World Bank Group, is providing a $50 million financing package to Amret Co., a leading microfinance institution, to help the company increase lending to smaller businesses, especially those in the agriculture sector and rural areas.
The $50 million syndicated loan will boost Amret’s ability to support more than 400,000 micro-entrepreneurs, most of whom work in agriculture, by providing about $900 million in loans over the next four years.
“With a wide network of branches in all 25 provinces across the country, we will continue our outreach to agricultural enterprises, providing them with reasonable and competitive financial products and services,” said Chea Phalarin, CEO of Amret. “Thanks to IFC, Amret has been able to diversify our sources of funding and connect to internationallenders. This financing package will enhance our ability to mobilize additional long-term funding from private investors.”
Agribusinesses make up one-third of Cambodia’s small and medium enterprises and account for about half of all SME financing needs. These long-term loans will enable Amret, Cambodia’s third-largest microfinance institution by gross outstanding loans, to help raise incomes, expand businesses, and create jobs throughout the country.
“IFC's continued support to Amret should allow the company to grow its operations across Cambodia.” said Adel Meer, IFC’s Financial Institutions Group Manager for East Asia and the Pacific. “Introducing international lenders to the MFI will also allow for greater diversity in Amret's funding base.”
IFC became a shareholder in Amret with 19.9 percent ownership in March 2015. In addition to its financial investment, IFC has continued to support Amret by providing it with advisory services in the field of risk management and corporate governance. Improvements in these two areas will help the institution realize its strategy of transforming into a commercial bank in the medium term.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
Amret Co. is a leading microfinance institution in Cambodia serving micro, small and medium enterprises and low-to-middle‐income populations with a focus on rural areas, agriculture and district and provincial cities. Amret offers a wide range of loan and deposit services including solidarity credits, individual credits, SME loans, savings accounts and term deposits. Amret currently has over 3,500 staff and serves over 397,000 clients from 138 branches across Cambodia, with more than $204 million in outstanding deposits and more than $424 million in outstanding loans and total assets of US$490 million. For more information, please visit