MICROCAPITAL BRIEF: International Finance Corporation (IFC) Acquires 19.9% Equity Stake in Cambodian Microfinance Institution Amret for $15m

The International Finance Corporation (IFC), member of the World Bank Group, recently acquired a 19.9-percent share of Amret, a microfinance institution in Cambodia, at a price of USD 15 million [1]. Additionally, IFC approved a loan up to USD 10 million to Amret. Chea Phalarin, the CEO of Amret, commented, “With IFC’s support, we strongly believe that our business will grow more rapidly and reach more small businesses and individuals seeking loans. With the necessary financing, they can grow their businesses and improve their livelihoods” [2]. 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 Amret. The firm’s other shareholders include Advans SA and FMO.

For 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 month, the company reported to MIX return on assets (ROA) of 6.17 percent, return on equity (ROE) of 35.89 percent and deposits of USD 153 million collected in approximately 174,000 active accounts.

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”), 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. For 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 month, the company reported to MIX deposits of USD 153 million collected in approximately 174,000 active accounts, return on assets (ROA) of 6.17 percent and return on equity (ROE) of 35.89 percent.

About International Finance Corporation (IFC)

The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, offers loans, equity investments and advisory and risk mitigation services to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2014, IFC has 184 member countries that drive its policies and approve disbursements. In June 2014, IFC reported net income of USD 1.4 billion, total assets of USD 84.1 billion, return on assets of 1.8 percent and total investment mobilization of USD 38.1 billion.

Sources and Additional Resources

[1] GlobalPost: Xinhua New Agency, “IFC acquires 19.9 percent stake of Cambodia’s leading microfinance institution,” http://www.globalpost.com/dispatch/news/xinhua-news-agency/150313/ifc-acquires-199-percent-stake-cambodias-leading-microfinanc

[2] IFC Press Release, “IFC Invests in Cambodia’s Amret Co. to Expand Lending for Micro and Smaller Businesses

MicroCapital Universe Profile: International Finance Corporation (IFC)

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

MicroCapital Universe Profile: Amret

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

MicroCapital Universe Profile: World Bank Group

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+World+Bank+Group

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