MICROCAPITAL BRIEF: Microbank LOLC (Cambodia) Authorized to Offer Leasing Services

LOLC (Cambodia) Plc, a microfinance institution (MFI) that is 60-percent owned by LOLC Micro Investment of Sri Lanka, recently received approval from the National Bank of Cambodia to offer leasing services. It is reportedly the first MFI to gain such permission. Beginning in March, LOLC (Cambodia) expects to offer both businesses and households access to leased vehicles, appliances and equipment.

LOLC (Cambodia) was founded in 1994 as Thaneakea Phum (Cambodia) by US-based NGO Catholic Relief Services. It is now 37-percent owned by US-based Developing World Markets (DWM) and 3-percent by staff of the MFI. DWM is an asset manager and investment bank seeking “market-rate returns for our investors and measurable social and environmental impact in the developing world.” It reports USD 490 million in assets under management as of 2014.

As of 2016, LOLC (Cambodia) has USD 245 million in total assets, a gross loan portfolio of USD 206 million, return on assets of 5.8 percent and return on equity of 34 percent. It also has 73 offices, 209,000 borrowers and 30-day portfolio-at-risk ratio of 1.3 percent. As of 2015, it held deposits totaling USD 275,000. Its deposit rates range from 5 percent to 10.5 percent per year.

LOLC Micro Investment is a unit of Lanka Orix Leasing Company, which is a member of the Japanese conglomerate Orix.

Sources and Additional Resources

LOLC Cambodia
http://www.lolc.com.kh/

National Bank of Cambodia
http://nbc.org.kh/

Orix
http://www.orix.co.jp/

Catholic Relief Services
http://www.crs.org/

Developing World Markets
http://www.dwmarkets.com/sustainable-capital/asset-management.html

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