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FMO Supports Job Creation in Cambodia

USD 102 million syndicated loan for MSME financing by ACLEDA Bank Plc.

Award for syndicated loan.

Lenders representatives and ACLEDA Bank’s senior management.

Phnom Penh, October 8, 2015, ACLEDA Bank Plc. based in Cambodia has received a USD 102 million syndicated loan. The loan has a tenor of 5 years.

The loan has been provided by The Netherlands Development Finance Company FMO (who also acted as Mandated Lead Arranger and Facility Agent). In addition to the USD 15 million provided by FMO, participants include OFID (USD 15m), OEeB (USD 15m), Proparco (USD 15m), Hatton National bank (USD 15m), National Development Bank (USD 10m) Symbiotics and Swedfund (USD 14m). Furthermore, ACTIAM provided an additional USD 3m via FMO's fund structure.

The transaction was launched as a USD 70m loan. However, due to the overwhelming market appetite for ACLEDA Bank, the transaction was upsized to USD 102m.

This landmark syndicated loan transaction brings new Lenders to Cambodia, as for some of the participants this is the first financing for a Cambodian bank.

This five-year loan will support ACLEDA in providing its clients with sustainable financing, and thanks to its extensive branch network, the facility will particularly benefit micro, small and medium entrepreneurs in rural and suburban parts of the country, where the supply of banking services is still limited and thereby actively supporting the creation of jobs in the Cambodian economy.

ACLEDA has been a client of FMO since 2000; FMO started its relationship with ACLEDA in 2000 as a shareholder (12%). After FMO sold its shares in 2009 to Jardine Matheson Group it has provided several loans over the years. Furthermore, FMO has provided loans to ACLEDA's subsidiary in Laos ("ACLEDA Bank Lao Ltd.").

Nanno Kleiterp, CEO of FMO commented, "This facility will enable ACLEDA to further expand its business in the rural areas of Cambodia, thereby stimulating much needed job creation and economic and sustainable development of the country. Our longstanding relationship with ACLEDA continues to be fruitful and successful."

Dr. In Channy, President & Group Managing Director of ACLEDA Bank Plc., said that "This syndicated loan of USD 102 million is very importance to ACLEDA Bank Plc. as well as micro, small, and medium enterprises in Cambodia, especially for those rural Cambodian entrepreneurs since this syndicated loan has not just given them with the opportunity for broader access to finance, but it will also be best serve them in accordance to the need of their enterprises requiring longer term financial facilities. With this syndicated loan, ACLEDA Bank Plc. will be able to reach at least 25,000 additional customers for the next three years from 2015, of course additional employment as well as additional incomes for its customers."

About FMO

FMO (the Netherlands Development Finance Company) is the Dutch development bank. FMO supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs. FMO believes a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With an investment portfolio of EUR 8.8 billion, FMO is one of the largest European bilateral private sector development banks. www.fmo.nl

About ACLEDA Bank Plc.

ACLEDA Bank was founded by International Labour Organisation and United Nations Development Programme as a local microfinance NGO in 1993. It became a fully operational commercial bank in 2003. ACLEDA Bank quickly emerged as the market leader by mainly serving micro and small enterprises. Today, ACLEDA Bank provides general banking services to microfinance and SME (MSME) clients with 25% of the loan portfolio committed to micro/retail clients (loan size up to USD 10,000), 70% to small and medium enterprises (loan size larger than USD 10,000) and 5% to corporates (loan size larger than USD 1,000,000). One of the key strengths of the Bank lies in its large and solid depositor's base, supported by 256 branches.

As of June 30, 2015, ACLEDA Bank has total assets of USD 3,603 million (FY14: USD 3,086 million), a total loan portfolio of USD 2,252 million (FY1: 1,994 million) and ACLEDA's client base exists of 395,012 borrowers and over 1.5 million depositors. Total number of employees is 11,652. ACLEDA Bank is the first bank in Cambodia that obtained an international credit rating from Standard & Poor's (B/Stable/B).