Supporting Cambodian SMEs and women’s entrepreneurship

Sathapana Bank is one of the 10 largest commercial banks in Cambodia, with total assets now standing at USD 2.7bn and some 4,400 employees at end-June 2022. It also has one of the very first networks of branches in Cambodia, with 170 branches and over 200 ATMs. Sathapana Bank mainly operates in the private banking segment, which accounts for 17% of its loan portfolio. 78% of its loan portfolio finances microenterprises and SMEs and it has developed corporate finance, which accounts for 5% of its portfolio (data at end-June 2022). 

Proparco is continuing its partnership with Sathapana Bank to promote financing for women and the reduction of inequalities in Cambodia, a country still classified as a least developed country (LDC). 

This second credit line is for USD 30m. Two-thirds of this new funding amount (USD 20m) will finance projects eligible under the “2X Challenge” and the remainder will go to SME loans (USD 10m). This follows on from the USD 50m senior credit facility signed in December 2020, with USD 25m (50% of the amount allocated for this first financing) for the development of its loan portfolio for small and medium-sized enterprises, and USD 25m for women’s entrepreneurship based on the criteria of the “2X Challenge” initiative, which aims to promote women’s economic empowerment and gender equality in developing countries.

The expected impacts of this project are as follows: 

• 9,500 jobs supported at the bank and with its SME clients over the next 5 years. At the bank, some 50 direct jobs will be maintained, including 40% for women, and 13 jobs will be created.
• Mobilization of private financing estimated at over EUR 36m (ratio of 1.21).
• Reduction of gender inequalities through the project’s 100% qualification under the 2X Challenge initiative.

This project will contribute to the achievement of SDG 5 (“Gender equality”) and SDG 8 (“Decent work and economic growth”).