MICROCAPITAL BRIEF: Advans SA Purchases 8.4% of Shares of Cambodian MFI Amret, Becomes Majority Shareholder; FMO Increases Stake to 19.9%

Advans SA, a Luxembourg-based venture capital company, has become the majority shareholder of Amret, a Cambodian microfinance institution (MFI), upon approval by The National Bank of Cambodia of its purchase of 8.4 percent of the shares of Amret. Advans previously owned 44.4 percent of the microbank [1]. Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden N.V. (FMO), a Dutch public-private partnership, also increased its stake from 12.6 to 19.9 percent. As of June 2014, FMO reports total assets of EUR 6.4 billion (USD 7.8 billion).

French development NGO Groupe de Recherche et d’Echanges Technologies (GRET) and Proparco, a development finance institution partly held by the French government, have exited from their holdings in the MFI, which totaled 36.7 percent.

As part of the group of transactions, the World Bank’s International Finance Corporation also purchased about one fifth of Amret’s shares.

For December 2014, Amret reported to the US nonprofit Microfinance Information Exchange (MIX) total assets of USD 345 million, a gross loan portfolio of USD 287 million and approximately 304,000 borrowers. As of the same date, the company reported to MIX collected deposits of USD 153 million in approximately 174,000 active accounts, return on assets (ROA) of 6.17 percent and return on equity (ROE) of 35.89 percent.

As of 2013, the Advans network serves approximately 322,000 loan clients via 140 branches in eight countries: Cambodia, Cameroon, Côte d’Ivoire, Democratic Republic of the Congo, Ghana, Pakistan, Tanzania and Nigeria. As of March 2013, Advans SA held total assets of EUR 45.0 million (USD 61.7 million) and committed capital of EUR 43.6 million (USD 58 million).

By Jeff Pierce, Research Associate

About Amret Company Private Limited (Amret)

Amret Company Private Limited (Amret), formerly known as Ennetean Moulethan Tchonnebath (which means “credit in rural area” in English), was established in Cambodia in 1991 as a project of French NGO Groupe de Recherche et D’Echange Technologiques (GRET). It became a private limited company in 2000 and received its license to operate as a microfinance institution (MFI) in 2001. In December 2014, Amret reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 345 million, a gross loan portfolio of USD 287 million and approximately 304,000 borrowers. As of the same date, the company reported to MIX collected deposits of USD 153 million in approximately 174,000 active accounts, return on assets (ROA) of 6.17 percent and return on equity (ROE) of 35.89 percent.

About Advans SA

Launched in 2005, Advans SA SICAR is a venture capital company that is registered in Luxembourg and managed by Horus Development Finance of France. The mission of Advans is to increase access to financial services for micro-, small and medium-sized enterprises (MSMEs) in emerging economies. In addition to equity and debt funding for microfinance institutions (MFIs), Advans provides technical assistance to MSMEs in an effort to assist them in achieving sustainable and profitable operations. As of 2013, the Advans network serves approximately 322,000 loan clients via 140 branches in eight countries: Cambodia, Cameroon, Côte d’Ivoire, Democratic Republic of the Congo, Ghana, Pakistan, Tanzania and Nigeria. As of March 2013, Advans SA held total assets of EUR 45.0 million (USD 61.7 million) and committed capital of EUR 43.6 million (USD 58 million).

About Agence Francaise de Developpement (AFD)

Established in 1941, Agence Française de Développement (AFD) is a bilateral development finance institution whose public mandate is to finance development according to the overseas development assistance policies of the French government. AFD finances development projects in approximately 90 countries across four continents. As of 2013, AFD reported total assets of USD 26 billion.

About Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden N.V. (FMO)

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) is a Dutch development bank that was founded in 1970. It supports financial institutions and governments through loans, guarantees and other investment promotion activities including local-currency investments. FMO is owned by the Dutch government, which holds a 51-percent stake, alongside commercial banks, trade unions, employers’ associations and individual investors. As of June 2014, FMO reports total assets of EUR 6.4 billion (USD 7.8 billion).

Sources and Additional Resources:

[1] Advans Group Press Release: “Advans becomes majority shareholder in Amret,” http://www.advansgroup.com/fileadmin/Advans/Press%20releases/20150313_PR_Amret.pdf

MicroCapital Universe Profile: Amret

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=AMRET

MicroCapital Universe Profile: Advans SA

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Advans+SA

MicroCapital Universe Profile: Agence Francaise de Developpement(AFD)

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Agence+Francaise+de+Developpement+%28AFD%29

MicroCapital Universe Profile: Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden N.V. (FMO)

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Nederlandse+Financierings-Maatschappijvoor+Ontwikkelingslanden+N.V.+%28Netherlands+Development+Finance+Company%2C+FMO%29

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/

Similar Posts: