AMK is Cambodia's leading microfinance institution (MFI) by the number of clients served, the 2nd largest by the size of its network of branches, and the 7th largest by the size of its loan portfolio. AMK was initially set up by an Irish NGO in the 1990s and today is the MFI with the strongest rural base and the most clearly defined and complete social mission in Cambodia. This MFI has obtained the highest social rating in the industry (AA-/α), and is a pioneer in combining financial returns and social performance in microfinance.
The financing for AMK is in the form of a subordinated debt in local currency equivalent to USD 6m. This operation aims to support the institution's growth by providing resources to strengthen its equity. USD 65,000 of technical assistance has also been provided. There are three components: the development of new interactive connected tools, a diagnostic on the optimization of the network of officers for their branchless banking service, and the introduction of Business Intelligence monitoring.
The project's strengths in terms of impact will include: 1) the impacts on the diversification of the range of loans: almost 90% of the MFI's clients are rural dwellers and 80% are women. The MFI also offers a wide range of innovative loans to meet client needs, 2) the mobilization of savings (111,000 savers, USD 49m of savings collected, largest MFI network of banking officers), and 3) job creation (over 1,000 direct jobs created and some 23,000 indirect jobs with AMK clients). The financial support will allow the microfinance institution to improve the quality of its services for its borrowers and strengthen its overall performance.