CDB cooperated with WBG in promoting the development of SMEs in Cambodia

On December 12, the 2021 international syndicated loan project of ACLEDA Bank Plc. of Cambodia, which had been initiated jointly by China Development Bank (CDB) and International Finance Corporation (IFC) of World Bank Group (WBG) with the participation of several financial institutions, had its total amount of USD 269 million fully extended with the share of CDB amounting to USD 100 million. This marked the success of the first cooperation of CDB with WBG and third-party markets in syndicated loans in the ASEAN region.

The syndicated loan project will help the ACLEDA Bank promote the development of local SMEs, with no less than USD 100 million being dedicated to women-owned SMEs. It is clearly stipulated in the terms of the financing agreement that obligations of sustainable development, concerning issues such as environmental protection and social responsibilities, must be fulfilled, that the destinations of investment funds must be supervised and that adverse impacts on indigenous peoples, the environment, community safety, biodiversity, cultural heritage, etc., must be prevented.

According to reports, ACLEDA Bank is an internationally recognized successful sustainable bank for SMEs. Up to now, the proportion of SME clients of the bank hit 74% with loans for SMEs accounting for 80% of its total credit assets, of which over a half go to SMEs owned by women.

A relevant official from CDB said that the bank and WBG aimed at fulfilling responsible financing and facilitating the implementation of the Global Development Initiative by providing financial support for boosting post-pandemic economic recovery, local livelihood and employment, etc. in the ASEAN region through multilateral financial cooperation. In the next step, CDB will, observing high standards for achieving sustainability and benefiting people’s livelihood, continue to focus on the priority areas for jointly promoting the Belt and Road Initiative, strengthen cooperation with relevant international financial institutions and back up priority projects, such as “small and beautiful” ones, so as to make new contributions to building a community with a shared future for mankind.