Cambodia microfinance institution Amret says Taiwan’s Bank SinoPac ( 永豐銀行 ) has completed its acquisition of 80% of its equity following regulatory approvals in both markets.

Bank SinoPac announced in May last year that its board had approved buying the majority stake for US$435 million with plans to boost its shareholding to 100% over the next two years.

In a statement released on January 15, Amret says its former majority shareholder – Luxembourg-based microfinance venture Advans – had fully exited from the Cambodian venture.

Dutch development bank Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden ( FMO ) and the World Bank’s International Finance Corporation ( IFC )  “will remain, with a reduced interest of 10% each, for at least two years”, the statement says. “Bank SinoPac will then assume 100% ownership of Amret.”

The fate of the remaining shareholders, France’s La Fayette Participations and a staff investment company, was not clear.

With 150 branches across Cambodia, Amret is the country’s largest microfinance deposit-taking institution with almost 630,000 customers at the end of December, up from around 600,000 at the end of 2023.

‘Incredible potential’

“Cambodia, with its dynamic economy and young, vibrant population, offers incredible potential, and we are eager to be part of its growth story,” Bank SinoPac says.

The Taiwan bank notes continued collaboration over the next two years with FMO and IFC, which have “played key roles in advancing responsible investment and financial inclusion” in Cambodia.

“Together, we will continue to uphold high standards of client protection while expanding Amret’s ESG capabilities, through our priority areas of sustainable finance, inclusive finance and smart finance,” it adds.

According to Amret chief executive Dos Dinn, “Bank SinoPac has been a long-term lender to Amret so we already enjoy an established relationship and have long recognized our shared values.”

Parties involved in the ownership change have “prioritized a smooth transition and ensuring the business continues to function as normal”, he says.

“We look forward to sharing strengths with Bank SinoPac to further Amret’s sustainable and responsible development.”

ESG commitment

Amret’s outgoing chairman Claude Falgon – the founder and former chief executive of Advans – says the Cambodian venture “prioritized finding a buyer who would not only meet regulatory standards but also commit to a market-leading position for sustainability, ESG, and client protection.

“Bank SinoPac has demonstrated commitments and experience in these areas and, together with its parent company SinoPac Holdings ( 永豐金控 ), has been consistently recognized by the leading global assessors of sustainable, responsible and ethical businesses.”

In addition to traditional financial products and digital services, Amret offers flexible loan schemes for farmers and medium-term loans for micro, small, and medium-sized enterprises.

Established in 1991, Amret had US$1.8 billion in assets at the end of last year, including US$1.5 billion in loans. Deposits were US$1.3 billion.

In Cambodia, microfinance deposit-taking institutions mainly offer small loans to the poor micro-entrepreneurs and those without access to banking services in rural and remote areas.

Activities range from lending – including leasing, guarantees and commitments – deposits, domestic and foreign currency remittances, and insurance. Their main loan products are personal credit, “solidarity loans”, and business-owner loans for micro-enterprises.

Bank SinoPac now lists Amret as a subsidiary along with Bank SinoPac ( China ) ( 永丰银行[中国] ) in Nanjing – the first wholly-owned unit of a Taiwan bank in mainland China – and SinoPac Insurance Brokers.

Bank SinoPac is also present in Hong Kong, Macau, Ho Chi Minh City, Hanoi, Bangkok and Yangon as well as Los Angeles and London.