The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, has agreed to disburse USD 2 million to ACLEDA Bank, a Cambodia-based commercial bank, to set up a microfinance institution (MFI) in Myanmar. The loan will be repaid with a stake of unspecified size in ACLEDA MFI Myanmar, which is scheduled to start operations in 2013. ACLEDA MFI Myanmar is expected to provide approximately 200,000 loans by 2020 mostly to micro- and small businesses owned by women.
For the year 2011, ACLEDA Bank reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 1.5 billion, a gross loan portfolio USD 1 billion, 272,300 active borrowers, deposits of USD 1.1 billion, 821,900 depositors, return on assets (ROA) of 3.73 percent, and return on equity (ROE) of 32.03 percent. As of 2012, IFC reported total assets of USD 75.7 billion.
By Brendan Millan, Research Associate
About International Finance Corporation (IFC)
The International Finance Corporation (IFC), a member of the World Bank Group, offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2012, IFC reported total assets of USD 75.7 billion.
About ACLEDA Bank
ACLEDA Bank is a public limited company based in Cambodia. It was originally founded in January 1993 as The Association of Cambodian Local Economic Development Agencies (ACLEDA), a non-governmental organization aiming to raise the standards of living of poor people by promoting economic activities ranging from self-employment to medium-sized business. It was licensed by the National Bank of Cambodia as a specialized bank in October 2000 and as a commercial bank in December 2003, when it was renamed ACLEDA Bank. It provides a range of banking services including deposits, loans, cash management and trade services. ACLEDA also works in Laos through its subsidiary, ACLEDA Laos, and it is in the process of launching operations in Myanmar as of 2013. For the year 2011, ACLEDA reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 1.5 billion, a gross loan portfolio USD 1 billion, 272,000 active borrowers, deposits of USD 1.1 billion, 822,000 depositors, return on assets (ROA) of 3.7 percent, and return on equity (ROE) of 32 percent.
Sources and Additional Resources:
[1] International Finance Corporation: “IFC Makes First Investment in Myanmar, Expanding Access to Finance and Creating Jobs” by Chu Van Anh, http://www.ifc.org/ifcext/Pressroom/IFCPressRoom.nsf/0/EC7F64B4B26E1CB685257AFC0034955C
MicroCapital.org story, January 8, 2013, “ACLEDA Bank of Cambodia Borrows $40m From IFC Capitalization Fund”, https://www.microcapital.org/microcapital-brief-acleda-bank-of-cambodia-borrows-40m-from-ifc-capitalization-fund/
MicroCapital.org story, December 7, 2012, “ACLEDA Bank of Cambodia to Launch Microfinance Operations in Myanmar in January 2013”, https://www.microcapital.org/microcapital-brief-acleda-bank-of-cambodia-to-launch-microfinance-operations-in-myanmar-in-january-2013/
MicroCapital.org story, January 16, 2013, “Government of Myanmar Announces Microfinance to be Key Element of Development Plans”, https://www.microcapital.org/microcapital-brief-government-of-myanmar-announces-microfinance-to-be-key-element-of-development-plans/
MicroCapital.org story, July 25, 2012, “Myanmar Caps Microloan Interest Rates at 17%, Germany’s Savings Bank Foundation for International Cooperation (SBFIC), Philippine’s CARD Fund Mingalar Myanmar, Myanmar Egress Microfinance Projects”, https://www.microcapital.org/microcapital-brief-myanmar-caps-microloan-interest-rates-at-17-germanys-savings-bank-foundation-for-international-cooperation-sbfic-philippines-card-fund-mingalar-myanmar-myanm/
MicroCapital.org story, November 17, 2011, “Myanmar (Burma) to Spend $333k to Establish Microfinance Programs in Rural Townships”, https://www.microcapital.org/microcapital-brief-myanmar-burma-to-spend-333k-to-establish-microfinance-programs-in-rural-townships/
MicroCapital.org story, July 1, 2011, “Myanmar Plans Microfinance Expansion in Rural Communities”, https://www.microcapital.org/microcapital-brief-myanmar-plans-microfinanc
MicroCapital Universe Profile: International Finance Corporation (IFC),
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
MicroCapital Universe Profile: ACLEDA Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ACLEDA+Bank
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