Taiwan’s Bank SinoPac (永豐銀行) plans to expand its retail customer base in Southeast Asia by acquiring 100% of leading Cambodian microfinance institution Amret Plc in three tranches.

In a statement released on May 4, the bank says the board of directors of SinoPac Holdings has approved the purchase, starting with the acquisition of 80% for US$435 million. The second and third tranches of 10% each will be acquired at the end of the first and second year.

Bank SinoPac’s announcement came ahead of its meeting with institutional investors in Hong Kong from May 6 to 7.

Amret’s majority shareholder is Luxembourg-based microfinance venture Advans SA which holds 52.778%.

The main minority shareholders are Dutch development bank Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) and the World Bank’s International Finance Corporation (IFC), with each holding 19.995%. The remaining shareholders are French investment company Lafayette Participation and a staff investment company.      

ESG capabilities

FMO and IFC (which holds 16% of Advans) will continue as partners, according to the statement.

“Bank SinoPac looks forward to collaboration with them, continue with ESG investment and client protection policies,” it says. “Looking ahead, Bank SinoPac can further broaden its positive influence on sustainable finance by strengthening ESG capabilities.”

As of December 31 2023, Amret had 150 branches in all 24 provinces of Cambodia with total assets of US$2 billion.

“Amret has a broad product suite covering traditional banking products, and an emerging digital capability,” the statement says.

“Combining Bank SinoPac’s resources and management expertise, Amret will be fully equipped in providing more diversified and convenient financial services to enhance customer value.

"This acquisition will also enable Bank SinoPac to extend its overseas network and exert more positive influence on sustainable finance.”

Bank SinoPac’s overseas footprint includes Hong Kong, Macau, mainland China (Nanjing, Shanghai, Guangzhou, Chongqing, Chengdu, Tianjin, Dongguan, Kunshan, Xiamen, and Yinchuan) and Vietnam (Ho Chi Minh City and Hanoi). It is also present in Bangkok and Yangon as well as in Los Angeles and London.

Fast growth

The bank says Cambodia’s economy is one of the fastest growing in Asia, with the International Monetary Fund (IMF) forecasting compound annual GDP growth of 6.3% for 2023-2028.

“Cambodia also has one of the most attractive demographic profiles in Asia which will support growth long term,” it says.

Amret's roots go back to 1991– the year of the Paris Peace Agreements ending Cambodia’s two decades of civil war – when a French organization set up a local credit cooperative in three provinces.

After transforming the project into a private company known as Ennetean Moulethan Tchonnebath (EMT) in 2000, it received a microfinance licence the following year.

As of February, Amret had almost 600,000 customers out of Cambodia’s population of 17 million.