MICROCAPITAL BRIEF: Welcome Financial Group Acquires, Renames Green Central Microfinance of Cambodia

South Korea’s Welcome Financial Group (WFG) recently rebranded Cambodia’s Green Central Microfinance Limited as Welcome Finance (Cambodia). WFG closed its acquisition of the microlender after receiving central bank approval for the transaction in April. While the purchase price and the identity of the seller are not available, Green Central was held by Cambodia’s Common Central Holding as of 2010.

Son Jong-joo, the Chairman of WFG, reportedly cited expanded usage of the firm’s proprietary credit analysis methods as one of the major advantages of the acquisition.

Licensed since 2008, Welcome Finance serves 3,500 customers via five branches in the Phnom Penh area. Its group and individual loans range in size from USD 100 to USD 25,000 with terms of six months to three years. As of June, the microlender reported outstanding loans totaling USD 7.7 million. During 2015, it earned a profit of USD 570,000.

WFG, whose investors include Hungkuk Life Insurance of South Korea, also operates Welcome Savings Bank in the Philippines.

Sources and Resources

Kingdom Welcomes South Korean MFI
http://www.khmertimeskh.com/news/31708/kingdom-welcomes-s-korean-mfi/

Local MFI Relaunched After South Korean Buyout
http://www.phnompenhpost.com/business/local-mfi-relaunched-after-south-korean-buyout

Welcome Finance (Cambodia)
http://greencmf.com/

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