MICROCAPITAL BRIEF: Grameen Credit Agricole Microfinance Foundation (GCAMF) Loans $5m to Cambodia’s Chamroeun, AMK, LOLC Micro Credit

The Grameen Credit Agricole Microfinance Foundation (GCAMF), a Luxembourg-based provider of financial services to social businesses, recently informed MicroCapital that it has disbursed the following loans to Cambodian microfinance institutions (MFIs): the local-currency equivalent of USD 540,000 to Chamroeun Microfinance; a pair of transactions totaling USD 2.2 million to Angkor Mikroheranhvatho Kampuchea (AMK), which was founded by Ireland-based NGO Concern Worldwide; and USD 2.2 million to the Lanka Orix Leasing Company Micro Credit Limited (LOMC), which was formerly known as Thaneakea Phum.

LOMC was founded by Sri Lanka’s Lanka Orix Leasing Company (LOLC) in partnership with Dutch development bank Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO). As of 2015, LOMC reported total assets of USD 46.2 million, deposits of USD 275 million, return on assets (ROA) of 3.73 percent, return on equity (ROE) of 20.3 percent and approximately 218,000 borrowers. LOLC, a member of the Japanese conglomerate Orix, reported USD 1.3 billion in total assets as of 2014.

As of December 2014, Chamroeun reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 9.83 million, a gross loan portfolio of USD 7.46 million disbursed to approximately 46,000 borrowers and total deposits of USD 552,000 from approximately 66,400 depositors. It also reported return on assets (ROA) of -1.25 percent and return on equity (ROE) of -5.93 percent for the same period. As of April 2014, AMK has 27 branches, a loan portfolio of USD 84 million and a voluntary savings balance of USD 24 million. The institution has return on assets (ROA) of 2.8 percent and return on equity (ROE) of 13.8 percent as of April 2014.

As of December 2014, GCAMF reported total assets of EUR 51 million (USD 57 million) and return on assets (ROA) of 6.6 percent. Since its inception in 2008 through March 2016 it has invested in 46 MFIs, 13 social-business projects and one fund.

By Petra Barbu, Research Associate

About Chamreoun Microfinance

Established in 1995, Chamroeun Microfinance is a microfinance institution (MFI) that provides savings, loans and microinsurance to low-income people in urban Cambodia. The MFI also engages micro- and small entrepreneurs in skills training. As of December 2014, Chamroeun reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 9.83 million, a gross loan portfolio of USD 7.46 million disbursed to approximately 46,000 borrowers and total deposits of USD 552,000 from approximately 66,400 depositors. It also reported return on assets (ROA) of -1.25 percent and return on equity (ROE) of -5.93 percent for the same period.

About Angkor Mikroheranhvatho Kampuchea

Angkor Mikroheranhvatho Kampuchea (AMK) is a microfinance institution (MFI) in Cambodia that was founded in 1999 by Concern Worldwide, a charitable organization in Ireland. It became an independent company in 2003, was licensed as an MFI in 2004 and was granted a deposit-taking license in 2010. As of April 2014, AMK has 27 branches, a loan portfolio of USD 84 million and a voluntary savings balance of USD 24 million. The institution has return on assets (ROA) of 2.8 percent and return on equity (ROE) of 13.8 percent as of the same month.

About Lanka Orix Micro Credit (LOMC)

Lanka Orix Micro Credit (LOMC) is a Cambodian microfinance institution with a network of 128 branches. Lanka Orix Leasing Company Micro Investment Limited owns 60 percent of Thaneakea Phum (Cambodia) Ltd.’s shares. Thaneakea Phum was launched in 1994 as part of the Small Enterprise Development program of US-based Catholic Relief Services in Cambodia and was officially incorporated as TPC in 2002. LOMC provides loans and savings products. As of 2015, LOMC reported total assets of USD 46.2 million, deposits of USD 275 million, return on assets (ROA) of 3.73 percent, return on equity (ROE) of 20.3 percent and approximately 218,000 borrowers.

About Lanka Orix Leasing Company

Incorporated in March 1980, Lanka Orix Leasing Company (LOLC) is a public listed company that provides leasing finance to entrepreneurs and commercial institutions for the acquisition of machinery and equipment. LOLC is based in Rajagiriya, Sri Lanka. In 2009, LOLC established a microfinance subsidiary, Lanka Orix Microcredit Company (LOMC), in partnership with Dutch development bank Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO). As of September 2014, LOLC has a controlling share of 60-percent in Thaneakea Phum (Cambodia) (TPC), a microfinance institution in Cambodia, through its microfinance operations subsidiary LOLC Micro Investments Limited (LOMI). As of March 2014, LOLC reported USD 1.3 billion in total assets. LOLC is a member of the Japanese conglomerate Orix.

About Grameen Credit Agricole Microfinance Foundation

Grameen Credit Agricole Microfinance Foundation (GCAMF) provides financial services to microfinance institutions (MFIs) and other social businesses. GCAMF was founded in Luxembourg in 2008 by Credit Agricole SA, a French retail bank, and Grameen Trust, a nonprofit microfinance organization affiliated with the Grameen Bank of Bangladesh. In financing MFIs, GCAMF focuses on those that prioritize rural development, transparency, consumer protection and serving women. The foundation has been active in 18 countries in Africa, Asia and Europe. As of December 2014, GCAMF reported total assets of EUR 51 million (USD 57 million) and return on assets (ROA) of 6.6 percent. Since its inception in 2008 through March 2016 it has invested in 46 MFIs, 13 social-business projects and one fund.

Sources and Additional Resources

[1] Information provided directly to MicroCapital from GCAMF

[2] MicroCapital Universe Profile: Chamreoun
<https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CHAMROEUN+MICROFINANCE>

[3] MicroCapital Universe Profile: Angkor Mikroheranhvatho Kampuchea
<https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Angkor+Mikroheranhvatho+Kampuchea+%28AMK%29>

[4] MicroCapital Universe Profile: LOMC <https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LOLC+Micro+Credit+Ltd.+%28LOMC%29>

[4] MicroCapital Universe Profile: LOLC <https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Lanka+Orix+Leasing+Company+%28LOLC%29>

[5] MicroCapital Universe Profile: Grameen Credit Agricole Microfinance
Foundation
<https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Credit+Agricole+Microfinance+Foundation>

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