This loan will allow AMK to develop its activity for microentrepreneurs, SMEs and rural clients, mainly women, but also to develop mobile banking.
AMK is Cambodia’s 2nd largest microfinance institution by the number of clients served and the 6th largest by the size of its loan portfolio. AMK serves over 665,000 clients (including some 327,000 borrowers) via a network of 150 retail outlets and 3,000 officers.
This MFI, which has a strong rural base, was certified Smart Campaign in November 2016. It is a precursor in combining financial returns and social performance in microfinance. AMK is the MFI with the most clearly successful social mission in Cambodia.
The project involves the allocation of a USD 8m senior loan to support the development of AMK’s loan portfolio. This loan will be set up in the context of a back-to-back loan mechanism with the National Bank of Cambodia (NBC), which will provide AMK with a loan in local currency.
AMK had some 304,000 client microentrepreneurs in 2017 and is targeting over 511,000 microentrepreneurs over the next 5 years thanks to PROPARCO’s loan.
This financing will also allow AMK to develop its activity with SME clients, which are expected to reach over 5,200 by 2022.
This project will also support employment and training in Cambodia. Indeed, AMK is planning to have 3,000 employees in the 5 coming years, i.e. 300 more than currently, and it is estimated that PROPARCO’s contribution could create or maintain some 7,000 jobs with AMK’s clients.
In addition, AMK is contributing to building the capacities of its clients, in particular via its partnership with Agribuddy.
PROPARCO’s support will have beneficial effects in terms of improving access to financial services, particularly for women, by helping AMK extend its network of village branches, its activity for small loans to rural clients, who are mainly women, and develop mobile banking.
In terms of the institutional framework, PROPARCO is involved in making the microfinance sector in Cambodia more sustainable via technical assistance to CMA for the development of good practices applicable to the various licensed institutions.