Cambodia: Dutch Firm Lends $20 M to Sathapana Bank
Return to top
Cambodia, May, 14 2021 - Dutch development firm FMO announced this week that it has provided Sathapana Bank with a $20 million subordinated loan to help the bank extend financing to small to medium-sized enterprises (SMEs) and increase its reserves.
“The funds will support Sathapana in its growth ambition and their focus on micro, small and medium-sized enterprises (MSMEs). Further, the funds will improve its stable funding and interest rate profile,” an FMO report said.
The Dutch firm said the investment was in line with its goals to invest in developing countries to reduce inequality and assist SMEs.
“SMEs play a very important role in Cambodia and contribute about 70 percent to employment and about 58 percent to GDP. Finally, Sathapana is a long-standing client with whom we can further deepen our relationship by providing much needed subordinated debt and supporting the transition to a full-fledged bank,” the firm said.
FMO provided a $15 million loan to Sathapana in 2014 and another $16.5 million loan in 2019.
In 2014, Sathapana was beginning its transition from a microfinance institution focused on small loans extended to those in rural communities to a full-fledged commercial bank.
Sathapana Limited started as an NGO in 1995 and was acquired by Maruhan Japan Bank Plc in December 2012.
In an unprecedented move at the time, Maruhan chairman Han Chang-Woo received approval from the National Bank of Cambodia to merge the two financial institutions into Satahpana Bank Plc in 2016.
According to Sathapana, the newly merged institution started with paid-up capital of $120 million, 160 branches, 73 ATMs and 3,458 staff.
The bank now has over $2 billion in assets, about 4,000 staff, over 170 branches and 230 ATMs nationwide.