Background
The loan is part of the Women Entrepreneurs Opportunity Facility, a global facility that is dedicated to expanding access to capital for 100,000 female entrepreneurs. This facility was launched by the IFC’s Banking on Women programme and Goldman Sachs’ 10,000 women in 2014.
Acleda Bank secured a syndicated loan from the IFC in order to further support the bank’s loan portfolio growth in the SME space. The loan syndication was launched on 7 April and the deal was signed on 30 May 2016.
Transaction Breakdown
Of particular strategic importance to the IFC was the provision of funds by Acleda Bank to women-owned SMEs. Acleda Bank hopes to increase its outstanding portfolio of loans to women-owned enterprises to more than US$1.5bn by 2019.
The IFC’s Banking on Women programme, which was launched in 2010 and assists lenders in providing financing for female entrepreneurs has already made 33 investments globally totalling nearly US$1bn has already undertaken 27 advisory projects.
The total size of the loan amounted to US$160mn, which was split between an A-loan and a B-loan. The facility carries a tenor of 5 years, and includes a 2-year grace period. It is set to mature in June 2021.
The A-loan was entirely provided by the IFC, and amounted to US$70mn. The IFC then facilitated the B-loan, was funded by commercial banks based in Thailand, Taiwan and China. The B-loan was worth US$90mn.
“The outreach and network that Acleda Bank has established makes it an effective partner in promoting new products such as gender-focused financing for MSMEs in Cambodia,” said Vivek Pathak, IFC Regional Director for East Asia and the Pacific.
“The IFC is also supporting the regional integration of the banking system through this loan, which provides greater liquidity to Cambodia and introduces banks like Acleda to new investors.”
