Sathapana Microfinance in CambodiaCambodia microfinance in Sathapana
of the Sathapana Group in Phnom Penh, recently removed from her company logo." Through the Mizuho Bangkok affiliate of one of Japan's biggest banks, Sathapana Ban Plc has been granted a substantial $50 million US dollar credit facility.
Sathapana said in a news item last weekend that the contract, which is being settled as the first large off-shore business credit of a Japan hub in the UK, was signing. With the Mizuho bench, the $50 million will be available under a three-year lending period, she said, without releasing the interest rat. New to Cambodia's overcrowded business banking sector, Sathapana is the first of its kind.
It was established in April 2016 through the amalgamation of the microfinance institute (MFI) Sathapana Ltd and the Japanese Maruhan Japan Banque. According to the financial situation at the times, the partnership established a business banking company with a deposited share of $120 million and aggregate wealth of $772 million. Our aggregate exposure was US$ 533 million and our aggregate deposit volume was US$ 367 million.
Migrating from MFIs to business banks can be a costly and time-consuming task, say those who have made it. Channy, Chairman and Chief Executive Officer of Acleda which made its own transfer in 2003, said that Sathapana needs to take on major debtors and expand its business in order to achieve a ROI.
Said that young business bankers faced inadequate resources and cannot count on current stockholders when they restructure away from the MFIs. "The first time Acleda changed from an MFI to a business banking institution, we had to borrow from other financial services providers as well as our shareholders," he said.
Sathapana Bank announces that it has obtained a $35 million USD revolving facility from seven international commercial bankers, supported by Taiwan's First Commercial Bank, just one months after the completion of the IPO. Mr David Marshall, a shareholder of Mekong Strategic Partners, a subsidiary of the Mekong Strategic Partners, said that Sathapana Bank has probably obtained a favorable interest on its $50 million line of credit due to its position in the Japan subprime leverage.
"I assume that Mizuho offers a very good interest rates in relation to deposits and is perhaps hedged with external funds in Japan," he said. "From a strategic perspective, it may make good business to lend off-shore if the financing is less expensive than domestic resources, including the interest that Sathapana is charging, the at source taxes they have to bear on the interest from the off-shore creditors and taking into account the 12. 5 per cent reserves they have to keep on the loaned moneys.
While the Sathapana Group, a large Japan-based consumer electronics group, owns Sathapana Banc, its holding may be forced to grant loans directly due to country-specific credit lines or bank-specific risks. Mr Marshall added that the large credit facilities of Mizuho Banc, which at the beginning of this months was granted its own Cambodia merchant license, are a good indication of the Kingdom's finance industry's brightening.
"Because[ Mizuho] is a large Japan multi-national loan granting banker to the country's banks, it is likely to create an advantage by enhancing Cambodia's reputation and boosting trust in the finance sector," he said. There were no members of the Sathapana Banks team available last night.