MICROCAPITAL BRIEF: Cambodian Microbank Sathapana Borrows $35m Syndicated by Taiwan’s First Commercial Bank

Sathapana Bank, a Cambodia-based commercial bank that evolved from a microfinance institution (MFI), recently borrowed USD 35 million from seven Taiwanese lenders through Taiwan’s First Commercial Bank for the purpose of “expanding its existing microfinance operations and broadening its commercial lending portfolio.” Sathapana management hopes that this loan indicates that Asian lenders are more willing to provide loans to MFIs.

Bun Mony, Chief Executive Officer of Sathapana Bank, said, “The Taiwanese have confidence in Sathapana Bank Plc, and this loan will support the bank to expand its commercial operations to more clients and also fulfill its mission as a MFI. First Commercial Bank has previously issued smaller loans, around USD 5 million, but this is the first time for such a large syndicated loan size to be given to a commercial bank.”

As of 2015, Sathapana reported total assets of USD 539 million, a gross loan portfolio of USD 470 million, deposits of USD 260 million, approximately 113,000 active borrowers and 128,000 active depositors.

By Jason Wei, Research Associate

Sources and Additional Resources

About the Sathapana Bank

Originally established as a nonprofit organization called Cambodian Entrepreneur Building Limited (CEB), Sathapana Bank was called Sathapana Limited when it registered with the National Bank of Cambodia (NBC) as a microfinance institution (MFI) in 2001. In January 2009, Sathapana Limited reportedly became the first microfinance institution in the country to obtain a deposit-taking license. In January 2011, Sathapana Bank was granted a money-exchange license from NBC. As of 2015, Sathapana reported total assets of USD 539 million, a gross loan portfolio of USD 470 million, deposits of USD 260 million, approximately 113,000 active borrowers and 128,000 active depositors.

[1] Sathapana Bank gets $35 million from Taiwan lenders, http://www.phnompenhpost.com/business/sathapana-bank-gets-35-million-taiwan-lenders

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