Prasac secures $150M loan from shareholder
CAMBODIA Securities Exchangelisted Prasac Microfinance Institution Ltd (Prasac) received another $150 million loan from its new shareholder KB Kookmin Bank (KB) to secure its financial stability and expand lending capacity amid the Kingdom’s ongoing fight against the spread of Covid-19.
The loan from the Seoul-based lender will be divided into two tranches – a seven-year $50 million subordinated loan and a three-year $100 million credit facility, Prasac said in an announcement received by The Post on Thursday.
Prasac executive vice-president Say Sony said the funds are part of its plan to strengthen its capital base and liquidity to support businesses growth.
It will enable his institution to provide more loans to its micro, small a n d medium- s i z e d e n t e r p r i s e (MSME) customers and enable them to sustain their businesses, he said, noting that most of the Kingdom’s MSMEs are owned by women.
“Despite this time of uncertainty, Prasac has been able to garner trust from KB Kookmin Bank through these credit facilities. This shows the unshaken confidence in Prasac and Cambodia’s financial sector as a whole and outlook for the country’s sustained economic recovery,” said Sony.
KB global business managing director Choi Chang-su said the loan is a part of his bank’s effort to enable MSMEs to contribute more fully to the economic recovery from the pandemic.
“We are pleased to be working with Prasac on this facility so that it can be channelled to MSMEs in Cambodia. The move seeks to generate economic recovery and growth, and employment amidst this unprecedented situation,” said Choi.
In mid-April, KB finished paying $603.4 million for a 70 per cent stake in Prasac and plans to buy the remaining 30 per cent stake in Prasac two years after the transaction and finalise the acquisition.
Prasac officially listed a corporate bond on the CSX on May 5, issuing 1,272,000 shares for the public offering with a total issue amount of 127.2 billion riel ($31.8 million).
Its total assets stand at $3.390 billion as of the end of last month, its total loan portfolio grew to $2.659 billion, and deposits reached $1.928 billion.