navigate_nextMedianavigate_nextOur Newsnavigate_nextACLEDA to Open in Laos

ACLEDA Bank To Open In Laos

December 26, 2007

ACLEDA Bank to open in Laos

Phnom Penh, December 26, 2007 — ACLEDA Bank Plc. announced today that it has been granted a preliminary license by the government of the Lao PDR to establish a commercial banking subsidiary in Laos. It is understood that this is the first time a Cambodian company has officially invested outside the country.

The new bank, to be named ACLEDA Bank Lao Ltd. ('ABL'), is expected to open its doors in Vientiane by the middle of 2008 but hopes to establish additional branches in the provinces starting with Sovannakhet and Pakse as business develops. It will be formed as a separate incorporated entity organized and registered under the laws of the Lao PDR with its initial shareholders comprising ACLEDA Bank Plc. of Cambodia subscribing 47.5% whilst the remainder will be taken up by three leading Dutch institutions, Nederlandse Financierings Maatschappij voor Ontwikkelingslanden N.V. ('FMO') — 30%, and the remaining 22.5% held by the Triodos Group including Stichting Triodos Doen and Triodos Fair Share Fund in equal parts. The paid up capital will be 100 billion Kip (approximately US$10.5 million) issued in the form of fully paid shares of 10,000 Kip all of which have been fully taken up. Other institutional investors who have traditionally supported ACLEDA in Cambodia are also expected to participate.

ACLEDA Bank's Chairman, Mr. Chea Sok, a former central banker and economist, explained this is the first stage of ACLEDA's strategy to migrate its particular expertise in providing financial services to the smaller entrepreneurs and retail segment, and to diversify its geographical base. He confirmed that the bank has several other countries in the region under active consideration but emphasised that expansion will be tempered by caution as ACLEDA will need time to digest what represents a major step into new areas. He was confident, however, that after more than a year of careful research into the Lao environment by the ACLEDA team the new bank will justify its shareholders' confidence.

Mr. In Channy, President and CEO, added that this is the culmination of the three year strategic plan which he had presented to the Board of Directors in 2005 to build ACLEDA into a regional player. Initially ABL will draw heavily on the management skills as well as the systems of its Cambodian parent and a core team of seasoned professionals has been working for several months in preparation for moving to Laos. However, it was the long term aim that these will be eventually replaced by Lao nationals many of whom will receive training in ACLEDA's offices in Cambodia. "In addition, we'll provide the new bank with the same electronic banking services and online MIS platforms used in our Cambodian operation. We look forward to sharing our successful retail bank model with the Lao PDR," he said.

Mr. Vann Saroeun, ABL’s General Manager designate, who has had a 15 year career as Manager of one of the largest provinces of the ACLEDA network, said he and his team had undergone a crash course in the Lao language as it was important to the understanding of the traditions and culture of our northern neighbour. After such long preparation he was eager to get started and prove that the ACLEDA experience has relevance beyond national boundaries.

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 and Company Secretary
E-mail: