The Overseas Private Investment Corporation (OPIC), a development finance institution backed by the US government, recently finalized a USD 5 million loan to Thaneakea Phum Cambodia Limited (TPC), a Cambodian microfinance institution (MFI). Half of the loan is expected to be designated to TPC’s home improvement loan program and the remaining money will be used to grow group and individual loans. Approximately 5,000 loans are expected to be generated through this deal. According to OPIC CEO Elizabeth Littlefield, “home improvement loans also enhance the income generation of home businesses, and reduce economic vulnerability by building the poor’s assets”.
The deal is OPIC’s first direct loan to a Cambodian institution. A controlling interest in TPC was acquired in 2010 by Developing World Markets, a US-based emerging markets asset manager that facilitated the OPIC-TPC partnership.
As of December 31, 2012, TPC reported to the US-based nonprofit Microfinance Information Exchange (MIX) a gross loan portfolio of USD 48 million disbursed to approximately 122,000 borrowers, deposits of USD 38,700 and approximately 3,700 depositors. As of year-end 2011, TPC reported return on assets (ROA) of 3.73 percent and return on equity (ROE) of 20.34 percent. As of 2012, OPIC is active in approximately 40 countries and as of 2011 reports a total portfolio of USD 14.5 billion.
By Charlotte Newman, Research Associate
About Thaneakea Phum Cambodia Limited (TPC)
Thaneakea Phum (Cambodia) Limited (TPC) was launched in 1994 in Cambodia as part of the Small Enterprise Development program of US-based nonprofit Catholic Relief Services (CRS). In 2002, the initiative was incorporated as a limited liability company and given the name Thaneakea Phum (Cambodia) Limited. In 2003, TPC received its license from the National Bank of Cambodia to operate as an official microfinance institution. As of December 31, 2012, TPC reported to the US-based nonprofit Microfinance Information Exchange (MIX) a gross loan portfolio of USD 48 million disbursed to approximately 122,000 borrowers, deposits of USD 38,700 and approximately 3,700 depositors. As of year-end 2011, TPC reported return on assets (ROA) of 3.73 percent and return on equity (ROE) of 20.34 percent.
About Overseas Private Investment Corporation (OPIC)
The Overseas Private Investment Corporation (OPIC) is an agency of the US government that was established in 1971 as a development finance institution. OPIC works with private-sector firms in the US to identify opportunities in emerging markets and create an enabling environment for private enterprise in developing countries. OPIC provides financing through direct loans as well as guarantees, political risk insurance and investment funds. As of 2012, OPIC is active in approximately 150 countries and as of 2011 reports a total portfolio of USD 14.5 billion.
About Developing World Markets (DWM)
Developing World Markets (DWM) is a US-based asset manager and investment bank that aims to make investments to promote sustainable economic development. It provides both debt and equity investments to microfinance institutions (MFIs) and other socially motivated organizations. As of December 2012, manages approximately USD 640 million in assets and has financed approximately 140 institutions in 40 countries.
Sources and Additional Resources:
Thaneakea Phum Cambodia Press Release: “TPC and OPIC Support Expansion of Home Improvement Loans for Low-Income Cambodians with Historic $5 Milion Investment,” http://tpc.com.kh/eng/opic.aspx
MicroCapital.org story, November 4, 2012, “MICROCAPITAL BRIEF: Absolute Portfolio Management Dual Return Fund Loans $2.5m to KazMicroFinance of Kazakhstan, Imon International of Tajikistan, Frontiers of Kyrgyzstan, Thaneakea Phum of Cambodia,” https://www.microcapital.org/microcapital-brief-absolute-portfolio-management-dual-return-fund-loans-2-5m-to-kazmicrofinance-of-kazakhstan-imon-international-of-tajikistan-frontiers-of-kyrgyzstan-thaneakea-phum-of-cambodia/
MicroCapital.org story, March 7, 2013, “MICROCAPITAL BRIEF: Overseas Private Investment Corporation (OPIC), US Agency for International Development (USAID) Commit $23m to Development Innovations Group (DIG) Housing Finance Facility in Haiti,” https://www.microcapital.org/microcapital-brief-overseas-private-investment-corporation-opic-us-agency-for-international-development-usaid-commit-23m-to-development-innovations-group-dig-housing-finance-facility-in-haiti/
MicroCapital Universe Profile: Thaneakea Phum Cambodia
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Thaneakea+Phum+%28Cambodia%29+Limited
MicroCapital Universe Profile: Overseas Private Investment Corporation (OPIC)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Overseas+Private+Investment+Corporation+%28OPIC%29
About Developing World Markets
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Developing+World+Markets+%28DWM%29
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