Finnfund writes in a press release that they will provide support to the micro-finance sector in Cambodia. This, they will do by investing in PRASAC Microfinance Institution Ltd, one of the leading microfinance institutions in the country. Prasac provides banking services particularly to small and medium-sized enterprises such as small farms and grocery stores in rural and remote areas.
The loan provided by Finnfund is worth USD 15 million. It is a part of combined loans of a total of USD 55 million, arranged by the German development finance institution DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH. This support of international investors demonstrates a strong confidence in Cambodia’s micro-finance sector and outlook for the country’s sustained economic recovery.
Prasac’s vision is to improve the living standards of the rural people by contributing to sustainable economic development through being a financially viable institution. Currently, Prasac employs approximately 5,895 people, and has well over 337,000 clients of which more than 90% are living in rural areas. More than 80% of the borrowers are women.
“This funding will enable Prasac to extend more loans to small businesses and low-to-middle-income borrowers,” said Sim Senacheert, Prasac’s Chief Executive Officer to Team Finland.
With the loan provided by Finnfund and other lenders, the company is hoping to employ 6,500 people more by 2020, and provide more than 6,000 new loans to its customers.