The Dutch development bank Financierings-Maatschappij voor Ontwikkelingslanden (FMO) recently lent USD 20 million to Sathapana Bank Plc, a former NGO in Cambodia that transformed first into a microfinance institution and then a commercial bank. The purpose of the loan is to “strengthen [the bank’s] capital base, support [its] growth as a commercial bank and contribute to the post-COVID growth of the Cambodian economy.”
Sathapana serves businesses of all sizes as well as individuals with services such as secured and unsecured loans, deposits, insurance, payment cards, currency exchange, and programs targeting women business owners. The stated goal of the institution is to “provide reliable banking services… and to empower entrepreneurs and to generate employmen[t] in order to improve their business and living standards through access to financial services in a sustainable manner.”
Founded in 1995, Sathapana was acquired in 2012 by Maruhan Japan Bank Plc, a Cambodia-based unit of Japan’s Maruhan Corporation. In 2016, Sathapana and Maruhan Japan Bank merged, keeping the name Sathapana. For the year 2021, the bank reported total income of USD 54.6 million, reaching total assets of USD 2.4 billion. As of December 2020, Sathpana had a gross loan portfolio of USD 1.57 billion, customer deposits of USD 1.28 billion as well as 12-month return on equity (ROE) of 13.89 percent and return on assets (ROA) of 1.97 percent. The bank operates approximately 170 branches around Cambodia.
Launched in 1957, Maruhan Corporation controls businesses that operate in Japan, Cambodia and Laos in a range of sectors, such as entertainment and banking. As of 2021, the corporation reports total assets of JPY 665 billion (USD 5.12 billion) and one-year ROE of 2.0 percent and ROA of 2.6 percent.
Established in 1970, FMO is 51-percent held by the Dutch government and 49-percent by private investors. The institution works toward the UN’s Sustainable Development Goals by funding capacity development and placing debt and equity investments in sectors such as agribusiness, financial institutions and energy. As of December 2021, FMO reports a total committed portfolio of EUR 9.7 billion (USD 10.2 billion), having brought in net profit of EUR 491 million (USD 518 million) during that year.
By Saulius Simonas Ramanauskas, Research Associate
Sources and Additional Sources
FMO press release
https://www.fmo.nl/news-detail/7384c91d-ebda-4e9c-ae8f-5b70a9d17939/monthly-transaction-overview-april
Sathapana homepage
https://www.sathapana.com.kh/
Sathapana annual report for 2020
https://www.sathapana.com.kh/file/Sathapana%20Bank%20-%20Sathapana%20Bank%20Annual%20Report%202020%20English.pdf
Maruhan Corporation homepage
https://www.maruhan.co.jp
FMO homepage
https://www.fmo.nl/
Previous MicroCapital article on FMO
https://www.microcapital.org/microcapital-brief-fmo-lends-5-7m-to-finelle-of-groupe-cofina-to-support-women-led-msmes-in-agriculture-sector-of-cote-divoire/
Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
Similar Posts:
- MICROCAPITAL BRIEF: BIO Loans $15m to AMK Microfinance of Cambodia
- MICROCAPITAL BRIEF: Hamkorbank of Uzbekistan Borrows $50m from FMO to Fund SMEs Owned by Women, Youth; Microenterprise; Climate Projects
- MICROCAPITAL BRIEF: Khan Bank Raises $10m in Bond Sale to Vision Microfinance Dual Return Fund to Support Women’s SMEs in Mongolia
- MICROCAPITAL BRIEF: Tunisie Leasing and Factoring Borrows $7.5m from BII-Symbiotics Green Bond Program for SMEs in Tunisia
- MICROCAPITAL BRIEF: QR Codes to Facilitate Retail Payments Across Cambodia-Laos Border
