PRASAC Microfinance Institution Ltd
Region and country of operations: Asia, Cambodia
Jurisdiction of registration: Cambodia
Business sector: Microfinance
Date of agreement (month/year): 11/2016
Finnfund’s financing: EUR 15,000,000
Size of project/financing: USD 55,000,000
Environmental and social category: FI-B
Prasac, one of the leading microfinance institution in Cambodia, provides banking services particularly to small and medium-sized enterprises such as small farms and grocery stores in rural and remote areas.
The vision of Prasac, founded in 1995, is to improve the living standards of the rural people contributing to sustainable economic development by being financially viable microfinance institution. In December 2016, Prasac employed 5,895 people, and had well over 337,000 clients of which more than 90% are living in rural areas. More than 80% of the borrowers are women.
With the loan provided by Finnfund and other lenders, the company is hoping to employ 6,500 people more by 2020, and provide more than 6,000 new loans to its customers. The loan provided by Finnfund is a part of a syndicated senior loan facility of USD 55 million, arranged by the German development finance institution DEG, Deutsche Investitions- und Entwicklungsgesellschaft mbH.
Main development impact
Prasac provides financial services to population that has limited access to these services. It focuses on providing loans especially to small and medium-sized enterprises and other customers living in rural areas. Access to finance provides opportunities and improves the position of women especially in rural areas. More than 80% of the borrowers are women.
Prasac provides a reliable alternative to local non-regulated lenders. Prasac is expected to employ 6,500 new employees during loan’s lifespan (2020). Indirectly employment generation comes through Prasac’s financing for micro and SME companies growth. There will also be increase in tax revenues.