Phnom Penh Commercial Bank, a subsidiary of South Korea JB Financial Group, said after a good performance last year it plans to expand.
For in depth analysis of Cambodian Business, visit Capital Cambodia
Shin Chang Moo, president of PPCBank, told Khmer Times the bank will add four more branches to its current 21 in the Kingdom, where it has 46 ATMs.
The expansion will be on the outskirts of Phnom Penh and in other provinces, including Kompong Speu, Poipet and Bavet city in Savy Rieng province.
“We are reviewing and we have to plan ahead what kind of strategies that we will bring to the areas … we have to customise the market,” said Shin.
In order to support its expansion, the bank is now mulling whether to issue corporate bonds on the Cambodia Security Exchange to raise funds.
Shin said he hopes the bonds can be issued in the first quarter of this year.
“We have a positive sign from the National Bank of Cambodia [NBC] already. The NBC is the first step allowing us to proceed with the Cambodia Securities Exchange, which will decide whether or not we can issue the bonds,” he added.
The bank began its operations in the Kingdom since 2008 providing corporate services in the financial sector and it considers the small and medium enterprises (SMEs) sector to be its core business for growth.
Shin said SMEs have real potential to affect Cambodia’s future growth. “We would like to play a role and contribute to the development of the SME sector so that we can grow together in Cambodia’s economy.
“These business segments have been under-served because there is very little historical loan performance data, which would otherwise be used to make responsible lending decisions. This has further constrained these businesses’ capacity to grow,” he pointed out.
In June last year, the bank entered into an agreement with the International Finance Corporation (IFC) to foster the growth of SMEs in the Kingdom, allowing PPCBank to use the IFC’s risk-sharing facility to help the enterprises.
Through the risksharing facility, the bank is able to provide a more inclusive service to existing customers, particularly SMEs, while also providing advisory services designed to expand PPCBank’s capacity to confidently extend more loans to more growing enterprises, Shin said.