MICROCAPITAL BRIEF: Japan’s Orix Corporation Acquires Additional 6% Equity in Cambodia’s Acleda Bank

Orix Corporation, a financial services provider based in Tokyo, Japan, recently announced that it has acquired a 6.25-percent equity stake in Acleda Bank, a commercial bank headquartered in Phnom Penh, Cambodia, that provides deposits and microcredit in Cambodia, Laos and Myanmar.

Once approved by the National Bank of Cambodia, the central banking authority in the country, Orix Corporation’s total shareholding in Acleda will increase to 12.25 percent. This additional investment will enable Orix to secure a seat on the board of directors of Acleda. The source of the newly issued shares was not disclosed.

As reported by MicroCapital at the time, Orix Corporation had acquired a 6 percent equity stake in Acleda in 2013 [2].

As of June 2015, Acleda reported total assets of USD 3.6 billion, a loan portfolio of USD 2.3 billion and deposits of USD 2.28 billion. As of March 2015, Orix Corporation reported total assets of JPY 11.4 trillion (approximately USD 95 billion), return on assets of 2.8 percent and return on equity of 11.5 percent.

By Victor Mugo, Research Associate

About Acleda Bank

Acleda Bank is a public limited company based in Phnom Penh, Cambodia. It was originally founded in January 1993 as the Association of Cambodian Local Economic Development Agencies (ACLEDA), a non-governmental organization aiming to raise the standards of living of poor people by promoting economic activities ranging from self-employment to medium-sized business. It was licensed by the National Bank of Cambodia as a “specialized bank” in October 2000 and as a “commercial bank” in December 2003, when it was renamed Acleda Bank. The bank’s major shareholders include the International Finance Corporation (IFC), a member of the US-based World Bank Group; FMO, a Dutch public-private partnership that aims to promote growtg in developing economies; Kreeitanstalt für Wierderaufbau Entwicklungsbank (KFW), a state-owned development bank in Germany; Japan’s Orix Corporation; and Triodos Investment Management, a subsidiary of Dutch Triodos Bank. As of June 2015, Acleda had 256 branches in Cambodia. Acleda also works in Laos where it has 41 branches and Myanmar where it has 6 branches. As of June 2015, Acleda Bank reported total assets of USD 3.6 billion, a loan portfolio of USD 2.3 billion and deposits of USD 2.28 billion.

About Orix Corporation

Orix Corporation is a financial services provider that was founded in 1964 and is based in Tokyo, Japan. Orix offers leasing, lending, life insurance, real estate financing and development, venture capital, retail banking, and security brokering. Orix has operations in Asia, North America, North Africa and the Middle East. As of March 2015, Orix reported total assets of JPY 11.4 trillion (approximately USD 95 billion), return on assets of 2.8 percent and return on equity of 11.5 percent.

Sources and additional information

[1] Twst.com: Orix announces additional investment in the largest Cambodian Bank Acleda

https://www.twst.com/update/orix-corporation-orix-announces-additional-investment-in-the-largest-cambodian-bank-acleda/

[2] MicroCapital Brief: Orix of Japan buys 6% stake in Acleda Bank of Cambodia

https://www.microcapital.org/microcapital-brief-orix-of-japan-buys-6-stake-in-acleda-bank-of-cambodia/

[3] MicroCapital Universe:  Acleda Bank

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

[4] MicroCapital Universe: Orix Corporation

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


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