MICROCAPITAL BRIEF: Thailand’s Bank of Ayudhya (Krungsri) Acquires Cambodian Microfinance Institution Hattha Kaksekar Limited (HKL)

The Bank of Ayudhya (Krungsri), a Thailand-based subsidiary of the Bank of Tokyo-Mitsubishi, recently acquired 100-percent interest in Hattha Kaksekar Limited (KHL), a microfinance institution (MFI) based in Phnom Penh, Cambodia. The companies did not disclose the value of the transaction. Krungsri CEO Noriaki Goto was quoted as saying that “the acquisition offers a meaningful footprint for Krungsri in Cambodia to enhance our [Cambodia, Laos, Myanmar and Vietnam] strategy, particularly values from business opportunities pertaining to both growing domestic market as well as cross border connectivity in the future.”

As of 2015, HKL reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 446 million and a gross loan portfolio of USD 364 million outstanding to approximately 113,000 active borrowers. As of the same date, it reports deposits of USD 236 million and approximately 216,000 depositors. As of 2016, Krungsri has 23,400 employees and 684 domestic and international branches, including 423 microfinance branches. As of June 30, 2016, it reports total assets of THB 1.21 trillion (USD 35 billion). As of March 31, 2016, Bank of Tokyo-Mitsubishi and its subsidiaries reports total assets of JPY 223 trillion (USD 2.21 trillion).

By Michelle Dold, Research Associate

About Hattha Kaksekar Limited

Hattha Kaksekar Limited is a microfinance institution (MFI) based in Phnom Penh, Cambodia. It was founded in 1994 by two charitable organizations, the Canada-based Organisation Canadienne pour la Solidarité et le Développement (OCSD) and UK-based Oxfam International. It was transformed into an independent non-governmental organization (NGO) in 1996 and then into a private liability company in 2001. Its financial supporters have included Oikocredit, Norfund, Triple Jump, the Agence Francaise de Developpement (AFD) and Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ). As of 2015, HKL reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 446 million and a gross loan portfolio of USD 364 million outstanding to approximately 113,000 active borrowers. As of the same date, it reports deposits of USD 236 million and approximately 216,000 depositors.

About Bank of Ayudhya (Krungsri Group)

The Bank of Ayudhya, which is also known as Krungsri, is a publicly-traded for-profit bank based in Bangkok, Thailand, that is a subsidiary of the Bank of Tokyo-Mitsubishi. It provides lending and savings services to individual and corporate clients as well as small and medium-sized enterprises (SMEs). It also provides “asset management services, equipment leasing, factoring, micro-finance, and installment loans, as well as engages in securities trading.” As of 2016, Krungsri has 23,400 employees and 681 domestic branches, including 423 microfinance branches. It also has branches in Hong Kong and Laos and a representative office in Myanmar. As of June 30, 2016, it reports total assets of THB 1.21 trillion (USD 35 billion).

Sources and Additional Information:

[1] The Nation: “Krungsri enters Cambodia with acquisition of HKL

[2] Deal Street Asia: “Thai financial major Krungsri buys out Cambodian micro-lender HKL

[3] Bank of Tokyo-Mitsubishi: Annual Securities Report 2016

[4] MicroCapital Universe Profile: Hattha Kaksekar Limited (HKL)

[5] MicroCapital Universe Profile: Bank of Ayudhya (Krungsri)

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