Company of the month: ACLEDA Bank Plc

 

The Company of the Month is selected due to recent developments and in connection

with the topic ”Microfinance”. The EAM Responsible Investments team analyses the

strenghts and weaknesses of the selected company in terms of ESG.

 

A bank for Microfinance

 

ACLEDA was founded in 1993 as NGO to promote micro- and small companies in Cambodia. Seven years later

the company received a limited banking licence from the Cambodian central bank with the support of international

development organisations such as USAID, International Finance Corporation and United Nations Development

Programme.

 

In 2003 it was renamed to ACLEDA Bank Plc, and it started operations as merchant and commercial bank after

receiving another licence from the central bank.

 

The company

 

ACLEDA Bank Plc reported profits of USD 56.5mn for

the first three quarters of fiscal 2013. With a headcount

of more than 7,700, the company operates branch offices

in Cambodia, Laos, and Myanmar, which makes it one of

the largest providers of microfinance and other financial

services in the region. In 2012, ACLEDA Bank Plc was the

first Cambodian bank to receive a credit rating (B) from

Standard & Poor’s.

The bank’s growth is still largely generated by the provision of micro loans to micro-, small-, and medium-sized

enterprises. In addition, the bank also offers other banking services in Cambodia such as deposits, monetary

transactions,

 

In 2008 the bank expanded into ally considered extremely reliable documents business, and insurance Laos,

where it currently operates debtors. In the long run the bank insurance services.

 

In 2008 the bank expanded into Laos, where it currently operates 28 branch offices. Under the name ACLEDA

Bank Lao Ltd. it offers its customers the same services as in Cambodia. In March 2013 the bank set up a subsidiary

in Myanmar, viz. ACLEDA MFI Myanmar Co. Ltd. At the moment ACLEDA operates three branch offices in Myanmar,

with business activities limited to microcredits and savings deposits.

 

As of the end of 2012, ACLEDA Bank Plc had some 209,000 active micro-loans with an average volume of

798 US-Dollars on its books. Slightly more than half of the loans were granted to women, who are generally

considered extremely reliable debtors.

 

In the long run the bank intends to float its shares on the stock exchange to support its ongoing expansion.

ACLEDA Bank Plc is among the top-three positions of the ERSTE RESPONSIBLE MICROFINANCE fund.

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