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ACLEDA Bank Raises Capital to US$30 million

November 30, 2006

PHNOM PENH – November 30, 2006 – ACLEDA Bank Plc, Cambodia’s leading retail bank which celebrated its thirteenth anniversary this year, has raised its issued and paid-up capital from US$13 million to US$30 million it was announced today. The bank, which now operates 153 offices throughout the country, reported record profits in 2005 and its published results for the first half of this year indicate that its performance in 2006 should surpass all previous figures.

ACLEDA Bank Plc. is 51% owned by Cambodia interests, including its staff, with the remaining 49% held in equal parts by powerful international shareholders including the International Finance Corporation ('IFC'), Deutsche Investitions-und Entwicklungsgesellschaft mbH ('DEG'), Nederlandse Financierings Maatschappij voor Ontwikkelingslanden N.V. ('FMO'), Stichting Triodos Doen and Triodos Custody B.V. The additional capital has been raised by means of a rights issue of 17 million new fully paid shares of US$1 all of which have been taken up by its shareholders.

This is the third time ACLEDA has raised capital since becoming a registered bank. In 2000, it raised US$4 million to launch ACLEDA Bank Limited as a specialised bank. Three years later it increased its capital to US$13 million by means of a rights issue and re-registered as a full commercial bank under the name ACLEDA Bank Plc. Now this latest in what seems to becoming a regular 3-year cycle of capital building will give ACLEDA one of the strongest balance sheets of any bank in Cambodia. In addition the bank, which has seen consistent post-tax profit growth from just US$475,000 in 2001 to US$4.2 million last year, has followed a conservative policy of retaining the majority of its earnings to build up its General Reserve. As a result ACLEDA expects that its equity will comfortably exceed US$40 million by the end of this year.

ACLEDA’s Chairman, Mr. Chea Sok, a former central banker and economist, explained why the bank, which already appears to be well capitalised, should be seeking additional capital at this time. "ACLEDA continues to experience strong growth in its core domestic business with loans and total assets increasing at approximately 50% annually", he said. "This trend is expected to continue for the next five years as demand in our segment of the market is far from saturated. However, increasing competition is also driving the need to introduce new services and products and to invest in new branches and systems all of which require a strong capital base."

Mr. In Channy, President and CEO, added that early next year ACLEDA will be launching electronic banking services which will include automated teller machines ('ATMs') in Phnom Penh and a number of provincial centres. "In addition, we plan to open 64 new outlets in 2007 expanding our network to 217 offices employing over 4,000 staff", he said. "We are also embarking on a substantial upgrade of our management information systems coinciding with the move to our magnificent new Head Quarters on Monivong Boulevard in January, 2007."

For more information contact:

Mrs. So Phonnary, Senior Vice President & Head of Marketing Division
E-mail:

Mr. Prom Visoth, Senior Vice President & Head of Legal Division
E-mail: