Sathapana Bank is one of Cambodia’s largest banks, particularly active in the financing of micro, small and medium-sized enterprises (“MSMEs”), which play a key role in the Cambodian economy. The bank benefits from extensive experience in the microfinance sector and relies on a wide network of offices in the country, in particular in rural areas.
$25 million of this $50 million credit line will be dedicated to supporting the development of the bank’s activity towards SMEs, while the other $25 million will be dedicated to supporting women entrepreneurship, as defined by the 2X Challenge criteria. The 2X Challenge: Financing for women is an initiative launched by the G7 Development Finance Institutions, including Proparco, in 2018 to promote gender-lens investing in developing and emerging economies.
Commenting on the operation, Proparco’s Regional Director for North and South-East Asia Magali Roux said: “Due to its unique contribution to SME development and women empowerment in Cambodia, Sathapana Bank plays a key role in Cambodia’s development and is therefore an ideal partner for Proparco. We are very happy to initiate this new partnership, which holds great promises for the future.”
Mr. Lim Aun, Chief Executive Officer of Sathapana Bank, said, “Providing access to financing, especially for SMEs and women entrepreneurship in Cambodia, is very important to stimulate a sound market and financial position to resume their investment and seek new growth opportunities. This credit line will ensure sustainable businesses by participating in and benefit from a thriving and inclusive economy during these difficult conditions due to the impact of Covid-19. We are delighted with this partnership and honored for being recognized by the Proparco for our substantial experiences and contribution to the country’s financial sector.“
About 3,600 MSMEs should benefit from this operation, in particular in the retail, services and agriculture sectors. A majority of these MSMEs are expected to be owned or managed by women. This project will thus contribute to the achievement of Sustainable Development Goals 5 (Gender Equality) and 8 (Decent Work and Economic Growth).