The Papua New Guinea-based Bank South Pacific has announced its expansion into Asia with its first Cambodian branch.
BSP has purchased 50 percent of local company RMA Finance and is in the process of rebranding it as BSP Finance Cambodia.
The firm will specialise in commercial finance, providing loans to businesses that want to purchase items such as vehicles, machinery, IT and office equipment.
Saing Ngorn, CEO of RMA Cambodia, said both parties are ready to start work on the joint venture.
“Asset finance is starting to develop in our country and demand is growing,” he said.
He added that RMA already has three years of experience in asset finance, mainly for businesses requiring loans for commercial vehicles and agricultural equipment.
BSP chief executive Robin Fleming told local media that the BSP rebranding should be completed by the end of July.
BSP board chairman Kostas Constantinou was also quoted as saying BSP is interested in expanding into Laos, Myanmar, and Vietnam within the next 18 months to two years.
He said feasibility studies are currently being carried out, to check local rules and regulatory requirements.
“There is opportunity in these countries and that’s the main thing,” he said.
Last week, two Japanese-owned firms also announced a joint asset finance venture in Cambodia.
Renet Japan Group and SBI Holdings Inc will come together to form Mobility Finance Cambodia Plc.
Mobility Finance will use financial technology or fintech in its day-to-day operations as a commercial finance company. This means it will provide financial services by making use of software and modern technology.
An inter-ministerial working group is currently pushing for regulations governing the asset finance sector to be internationally standardised to boost domestic and international businesses in the country.
According to the National Bank of Cambodia, there were 12 commercial finance companies in Cambodia by the end of 2016, with total assets of about $156 million.
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