The National Bank of Cambodia (NBC) has approved KB Kookmin Bank’s investment in Prasac Microfinance Institution, according to senior official of Prasac Microfinance Institution.
Prasac president and CEO Sim Sinacheert, said that the institution got the approval from the NBC on KB’s investment in Prasac since Jan 29, 2020. However, the transaction has not been completed yet because KB is still awaiting approval from Korean authorities and we expect KB to get approval soon.
“KB’s investment in Prasac shows a positive sign and confidence of foreign investors in Cambodia and Prasac. So far we haven’t discussed future plans in detail yet. We will discuss the plans soon after we receive approvals from all authorities and we will let the public know,” Sim added.
“It is expected that KB will bring more sophisticated products, modernise technology, bring more funding with low costs, more capital, and their banking experiences to Prasac,” he added.
KB Kookmin Bank in late December last year, announced that the company has agreed to buy a 70 percent stake in Prasac Microfinance Institution, one of the Kingdom’s largest micro lenders.
The Korean bank will spend a total of $603.4 million to acquire the shares from Sri Lanka-based LOL Holdings, who holds the 70 percent stake in Prasac.