MICROCAPITAL BRIEF: Thailand’s Kiatnakin Bank, Siam Commercial Bank; India’s Tamilnad Mercantile Bank; ING Bank of the Netherlands Participate in $65m Syndicated Loan to Microfinance Institution (MFI) Prasac to Encourage Growth of Micro-, Small, Medium-sized Enterprises (MSMEs) in Rural Cambodia

Commercial banks including Thailand’s Kiatnakin Bank and Siam Commercial Bank (SCB); India’s Tamilnad Mercantile Bank (TMB); and the Netherlands’ ING Bank, recently announced the disbursement of a syndicated loan of USD 65 million to Cambodian microfinance institution (MFI) Prasac Microfinance Limited.

The loan includes tranches of USD 20 million each from Kiatnakin Bank, SCB and TMB Bank as well as USD 5 million from ING Bank. The aim of the loan is to boost access to funding for micro-, small and medium-sized enterprises (MSMEs) that operate in rural areas of Cambodia. The loan syndicate was arranged by the International Finance Corporation (IFC), a member of the US-based World Bank Group. 

Kamalkant Agarwal, the head of international banking at SCB, said that “SCB is pleased to be part of the syndicated loan for Prasac and especially proud of the fact that the loan will contribute to the expansion of small businesses in Cambodia”[1]. Sim Senacheert, Prasac’s chief executive officer, added that “expanding lending to micro borrowers and smaller businesses is a focus of Prasac’s growth and expansion strategy”[1].

 

As of year-end 2014, Prasac reported total assets of USD 700 million, a gross loan portfolio of USD 580 million outstanding to approximately 251,000 borrowers, and 370,000 depositors with deposits amounting to USD 305 million. As of year-end 2014, Kiatnakin Bank reported total assets of approximately THB 240 billion (approximately USD 6.8 billion), a gross loan portfolio of approximately THB 85 billion (approximately USD 2.4 billion) and deposits of approximately THB 150 billion (approximately USD 4.2 billion). As of year-end 2014, SCB reported total assets of approximately THB 2.7 trillion (approximately USD 79.6 billion), a gross loan portfolio of approximately THB 1.8 trillion (approximately USD 48.3 billion) and deposits of approximately THB 1.89 trillion (approximately USD 53.2 billion). As of March 2015, TMB reported total assets of INR 450 billion (approximately USD 7 billion). As of year-end 2014, ING Bank reported total assets of approximately EUR 828.6 billion (approximately USD 922.7 billion). As of June 2015, IFC reported total assets of USD 87.5 billion, a net annual income of USD 445 million and return on assets of 0.5 percent.

 

By Victor Mugo, Research Associate.

 

About Prasac

Prasac was originally founded as a credit component of an agriculture support program in Cambodia that was funded by the European Union and implemented by the Royal Government of Cambodia. It was registered in 2004 with the Cambodian Ministry of Commerce as a private limited liability company and is licensed by the National Bank of Cambodia (NBC) to offer financial services. As of year-end 2014, Prasac reported total assets of USD 700 million, a gross loan portfolio of USD 580 million outstanding to approximately 251,000 borrowers, and 370,000 depositors with deposits amounting to USD 305 million. As of 2015, 85 percent of Prasac’s borrowers are women.

 

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, advisory and risk mitigation services, and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of June 2015, IFC has 184 member countries that drive its policies and approve disbursements. Also, As of June 2015, IFC reported total assets of USD 87.5 billion, a net annual income of USD 445 million and return on assets of 0.5 percent

 

About Kiatnakin Bank Public Limited Company

Kiatnakin Bank Public Limited Company is a commercial bank in Thailand. Kiatnakin Bank operates three business segments: commercial banking, capital markets and debt restructuring. The bank is listed on the Stock Exchange of Thailand. As of year-end 2014, Kiatnakin Bank reported total assets of approximately THB 240 billion (approximately USD 6.8 billion), a gross loan portfolio of approximately THB 85 billion (approximately USD 2.4 billion) and deposits of approximately THB 150 billion (approximately USD 4.2 billion). Also, the bank reported return on assets of 1.8 percent and return on equity of 7.36 percent as of 2014.

 

About Siam Commercial Bank

Siam Commercial Bank (SCB) is a commercial bank in Thailand. It operates four business segments: the wholesale banking group, which serves corporate and commercial customers; the business banking group, which serves small and medium-sized enterprises (SMEs); the retail banking group, which serves individuals and SMEs; and the special business group, which is responsible for rescheduling and refinancing non-performing loans. As of year-end 2014, SCB reported total assets of approximately THB 2.7 trillion (approximately USD 79.6 billion), a gross loan portfolio of approximately THB 1.8 trillion (approximately USD 48.3 billion) and deposits of approximately THB 1.89 trillion (approximately USD 53.2 billion).

 

About Tamilnad Mercantile Bank

Tamilnad Mercantile Bank (TMB) is a commercial bank based in India. It provides products including consumer banking, corporate banking, investment banking, mortgage loans, private banking and wealth management. As of March 2015, TMB reported total assets of INR 450 billion (approximately USD 7 billion), net revenues of INR 3.8 billion (approximately USD 59.5 million), return on assets of 1.38 percent and return on equity of 15.6 percent.

 

About ING Bank

ING Bank is a commercial bank based in the Dutch city of Amsterdam. The company offers retail banking services to individuals, small and medium-sized enterprises (SMEs) and mid-corporates in Europe, Asia and Australia. It also provides business lending, mortgages and other consumer lending, cash management, corporate finance, real estate and leasing services. As of year-end 2014, ING Bank reported total assets of approximately EUR 828.6 billion (approximately USD 922.7 billion), approximately EUR 2.8 billion in net revenues (approximately USD 3.1 billion), return on assets of 1.22 percent and return on assets of 7.6 percent.

 

Sources and additional Resources.

 

[1] The Nation: Three Thai banks join IFC’s microfinance push in Cambodia

http://www.nationmultimedia.com/business/Three-Thai-banks-join-IFCs-microfinance-push-in-Ca-30263428

[2] MicroCapital Universe Profile:  Prasac

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

[3] MicroCapital Universe Profile:  Kiatnakin Bank Public Limited Company

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

[4] MicroCapital Universe Profile: Siam Commercial Bank

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=siam+commercial+bank

[5] MicroCapital Universe Profile: Tamilnad Mercantile Bank

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Tamilnad+Mercantile+Bank

[6] MicroCapital Universe Profile: ING Bank

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

[7] MicroCapital Universe Profile: The International Finance Corporation (IFC) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%2


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