NEW SHAREHOLDER HELPS AMK GROW FURTHER
Phnom Penh, August 30, 2018―AMK’s new shareholder will bring both investment capital and financial expertise to help AMK grow further. The new shareholder is the Shanghai Commercial & Savings Bank, Ltd. (SCSB), originally from Shanghai, China. SCSB is currently has its headquarters in Taipei and subsidiaries in Hong Kong and Shanghai. There are two reasons for the decision to accept a new shareholder. Firstly, the three existing shareholders of AMK have ended their contracts. Secondly, the mission and vision of SCSB and AMK are similar, to help the people in the lower social and economic rung to move up the economic ladder through appropriate microfinance services and be sustainable.
AMK has five shareholders which include Agora Microfinance N.V. (AMNV), Rural Impulse Fund II S.A. SICAV-FIS (RIF II), Société de Promotion et de Participation pour la Coopération Economique S. A. (PROPARCO), the Cambodia Laos Development Fund (CLDF), and AMK Staff Association (AMK-SA). However, the three shareholders RIF II, PROPARCO, and CLDF will exit their shareholdings completely. At the same time, many shareholders are interested in investing with AMK, AMK has selected SCSB because the bank has over 100 years of professional experience and expertise in the financial sector and that would enable AMK to do its work more efficiently and effectively.
Mr. Kea Borann, CEO of AMK Microfinance Institution Plc. said “AMK’s expansion into non-credit business in the past, especially its rapidly expanding deposit base, requires an ever-increasing focus on risks and liquidity management. We, therefore, believe that the addition of a strong banking institution as our main shareholder is an excellent fit for the next step in AMK’s development. Further, we are very reassured by SCSB’s appreciation of our core mission, its support for the existing management team, and its intent to further deepen on our work with Cambodia’s low-income market segment.”
Mr. John Yung, SCSB Board of Director, EVP & CIO said “AMK represents our first acquisition outside the Greater China. We are excited about the future prospects for AMK and for Cambodia in which we look forward to playing a constructive role. We are impressed with AMK’s social mission and are committed to not only continue but further strengthening it as the institution’s incoming principal shareholders. With the aspiration to serve society, support industry and promote international trade, SCSB’s roots in serving the individual who would not traditionally have had access to banking services are firmly entrenched in the principles that guide SCSB today. SCSB sees a lot of similarity between when SCSB started as a Bank and where AMK is now. SCSB believes in the vision & mission, values, and strategy of AMK and it’s this sharing of minds that will be used as a base for SCSB adding real value to the growth of AMK. We are very excited about this partnership and look forward to building a successful long-term relationship with AMK on the foundation of its core values.”
Mr. Tanmay Chetan, Chairman of AMK and CEO of Agora Microfinance, said “AMK’s shareholders, directors and management are delighted to welcome SCSB as our anchor shareholder. The current shareholders believe that AMK’s future success will be considerably strengthened by SCSB’s strong banking experience and expertise. SCSB’s interest in furthering the development of Cambodian society, its commitment to AMK’s mission, and its ability to providing long-term capital make it the ideal shareholder for the next phase of AMK’s development. We are excited about this partnership, and what it will bring to AMK and the wider Cambodian economy.”
AMK is a leading Microfinance Institution in terms of outreach and borrower numbers. As of July 2018, AMK has a coverage of 89% of total villages across Cambodia with the number of staff over 2,600, total clients of over 780,000 with a loan portfolio of over USD230 million, and deposits of more than US$ 126 million. The number of offices has reached 150, and over 3,500 agents nationwide. AMK provides a variety of financial services including Loan, Deposit, Money Transfer, Micro Insurance, Personal Accident Insurance, Payment Service, Payroll Service, Mobile Banking, ATMs, and CDMs.
The Shanghai Commercial & Savings Bank, Ltd. was established in Shanghai in 1915 with the aspiration “to serve society, to support industry, and to promote international trade.” It is the premier choice for small and medium-sized enterprises and recognized for its efficient trade financing and remittance services.
Together with its subsidiary Shanghai Commercial Bank Ltd. in Hong Kong, SCSB manages total consolidated assets of more than US$ 58 billion and capital more than US$ 1.3 billion and has shareholder’s equity more than US$ 5.5 billion.
We employ over 4,000 staff members and operate 127 branches worldwide. In Taiwan alone, we operate 69 branches and employ over 2,400 staff, with another 3 branches in Hong Kong, Vietnam and Singapore, and 3 representative offices in Thailand, Cambodia, and Indonesia. Through SCB, we operate 45 branches in Hong Kong and 7 branches overseas (Shanghai, Shenzhen, Shanghai Pilot Free Trade Zone, London, New York, San Francisco, and Los Angeles).