Capital injection for the microfinance sector in Cambodia

DEG is providing continued support to the micro-finance sector in Cambodia with long-term capital that expands financing to local small and medium-sized enterprises. As part of this, DEG has now arranged a syndicated senior loan facility of 55m US-dollar to PRASAC Microfinance Institution Ltd. (PRASAC). The facility comprises a DEG loan of 5m US-dollar and an aggregate of 50m US-dollar of loans from four international financial institutions.

PRASAC is a long-standing partner of DEG. In the past four years DEG has committed to PRASAC USD 45m. Its close bond with the company, together with in-depth knowledge of the Cambodian financial sector and global networks have played a key role in mobilizing this facility. The participation of four international investors demonstrates a strong confidence in Cambodia´s micro-finance sector and outlook for the country’s sustained economic recovery.

“DEG is one of our long term creditors that help us expanding our lending activities to new SME clients,” said Sim Senacheert, PRASAC’s Chief Executive Officer. “We appreciate DEG’s effort of arranging such a significant amount from international lenders to support Cambodia’s Microfinance institution. This funding will enable PRASAC to extend more loans to small businesses and low-to-middle-income borrowers, 85 percent of whom are women.”