Summary of Proposed Investment
Project Number
22597
Company Name
CANADIA BANK PLC
Date SPI Disclosed
Apr 13, 2004
Country
Cambodia
Industry
Financial Markets
Projected Board Date
Jun 1, 2004
Status
Completed
Sector
Primary Mortgage Institutions
Department
Regional Industry - FIG Asia & Pac
Environmental Category
C - No Impact
Previous Events
Approved : Sep 2, 2004
Signed : Sep 20, 2004
Invested : Jun 3, 2005
Project Description
The project entails IFC providing Canadia Bank PLC (Canadia, the bank or the company) a credit line of up to $5 million to help finance the growth of the bank’s residential mortgage portfolio. The purpose is to augment the level of home ownership within the middle-income segment of the population by supporting the promotion of housing finance products in Cambodia.
The objectives of this project are the following:
- The bank aims to tap into the increased demand from middle-income homebuyers by providing financing for mid-range priced housing units with longer tenured loans. Given the growth in population and an emerging young and upwardly mobile middle-income segment, the demand for new housing is strong.
- The tenor and pricing of IFC’s credit line will allow the bank access to long-term funding to better manage its growing long-term mortgage loan exposure.
- Canadia Bank is Cambodia’s largest private sector bank, with total assets as of December 2003 amounting to $191.2 million, equity of $22.4 million, and a net income of $3.5 million for FY 2003. With over 300 employees, Canadia offers a wide range of financial services through its network of eleven branches throughout Cambodia.
Some dates of importance are the following :
1991 - Canadia Bank was established as Canadia Gold & Trust Corporation Limited, a joint venture between overseas Cambodians and the National Bank of Cambodia.
1993 - The name of the bank was changed to Canadia Bank Limited, as it was transformed into a commercial bank registered under the Ministry of Commerce and the National Bank of Cambodia.
1994 - Canadia was the first Cambodian bank to be granted a foreign exchange license.
1998 - The bank was fully privatized.
The objectives of this project are the following:
- The bank aims to tap into the increased demand from middle-income homebuyers by providing financing for mid-range priced housing units with longer tenured loans. Given the growth in population and an emerging young and upwardly mobile middle-income segment, the demand for new housing is strong.
- The tenor and pricing of IFC’s credit line will allow the bank access to long-term funding to better manage its growing long-term mortgage loan exposure.
- Canadia Bank is Cambodia’s largest private sector bank, with total assets as of December 2003 amounting to $191.2 million, equity of $22.4 million, and a net income of $3.5 million for FY 2003. With over 300 employees, Canadia offers a wide range of financial services through its network of eleven branches throughout Cambodia.
Some dates of importance are the following :
1991 - Canadia Bank was established as Canadia Gold & Trust Corporation Limited, a joint venture between overseas Cambodians and the National Bank of Cambodia.
1993 - The name of the bank was changed to Canadia Bank Limited, as it was transformed into a commercial bank registered under the Ministry of Commerce and the National Bank of Cambodia.
1994 - Canadia was the first Cambodian bank to be granted a foreign exchange license.
1998 - The bank was fully privatized.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr. Pung Kheav Se, CEO
No.265, Ang Duong Street,
Phnom Penh, Cambodia
Phone: 855-23-215 286
Fax: 855-23-427 064
No.265, Ang Duong Street,
Phnom Penh, Cambodia
Phone: 855-23-215 286
Fax: 855-23-427 064