Summary of Proposed Investment
Project Number
26389
Company Name
ACLEDA BANK LAO LTD
Date SPI Disclosed
Sep 5, 2007
Country
Lao People's Democratic Republic
Industry
Financial Markets
Projected Board Date
Oct 5, 2007
Status
Completed
Sector
Commercial Banking - Microfinance and Small Business
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : Mar 10, 2009
Signed : Mar 24, 2009
Invested : Jul 7, 2009
Project Description
This project comprises an IFC equity investment of LAK17.5 billion, approximately $1.83 equivalent in ACLEDA Bank Lao Ltd (ABL), a green-field banking/microfinance operation capitalized at LAK100 billion (approximately $10.4 million). ABL will operate as a commercial bank under the Commercial Banking Law in the Lao PDR, with its head office in Vientiane and branches through out the country. Its main focus will be on the low-end segments of the market, leveraging on its parent’s (ACLEDA BANK plc’s) expertise in MFI management and operation.
ACLEDA Bank plc (ACLEDA) is an existing IFC client in neighboring Cambodia. ACLEDA was initially a microfinance operation and recently turned into full-fledged bank. ABL is ACLEDA’s first step in its regional expansion strategy. Under current local regulations, foreign investors are not allowed to set up MFIs in Laos, therefore, ABL will seek a full banking license. ACLEDA will be leveraging its relationship with existing strategic shareholders – IFC, KfW, FMO and Triodos Bank – in its Lao venture. Thus, the proposed shareholding is as follows: ACLEDA- 30% with 17.5% each taken by IFC, KfW, FMO and Triodos Bank.
ACLEDA Bank plc (ACLEDA) is an existing IFC client in neighboring Cambodia. ACLEDA was initially a microfinance operation and recently turned into full-fledged bank. ABL is ACLEDA’s first step in its regional expansion strategy. Under current local regulations, foreign investors are not allowed to set up MFIs in Laos, therefore, ABL will seek a full banking license. ACLEDA will be leveraging its relationship with existing strategic shareholders – IFC, KfW, FMO and Triodos Bank – in its Lao venture. Thus, the proposed shareholding is as follows: ACLEDA- 30% with 17.5% each taken by IFC, KfW, FMO and Triodos Bank.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
In Channy, President & Chief Executive Officer
ACLEDA Bank
#61, Preah Monivong Blvd., Sangkat Srah Chork, Khan Daun Penh, Phnom Penh
Kingdom of Cambodia
Telephone: (855)-23-998 777
ACLEDA Bank
#61, Preah Monivong Blvd., Sangkat Srah Chork, Khan Daun Penh, Phnom Penh
Kingdom of Cambodia
Telephone: (855)-23-998 777
For Inquiries and Comments About IFC, Contact
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster