Listed PRASAC posts sound business in second quarter 2020
Listed PRASAC posts sound business in second quarter 2020
Bond-listed PRASAC Microfinance Institution Plc reported a sound business performance in the second quarter of this year.
In its financial report filed to the Cambodia Securities Exchange (CSX) on Wednesday, it logged $3.353 billion in total assets in the second quarter, up 19.97 per cent year-on-year.
This makes it the Kingdom’s largest microfinance deposit-taking institution (MDI) in terms of total assets.
Its deposit balance increased to $1.931 billion, while its gross loan portfolio was worth $2.665 billion.
But it recorded just 63.628 billion riel ($15.5 million) in profit before income tax, a 49.07 per cent year-on-year plunge.
It said: “The drop in profit seen this year is mainly due to the Covid-19 pandemic ravaging the world and its economies, in each and every country.”
Quoted in the filing, chairman Jun Kwi-sang said the government had made great strides to bulk up the Kingdom’s socio-economic response, particularly in the financial sector which he said is considered the backbone of the national economy.
He said: “Despite this time of uncertainty, PRASAC continued to grow in all key areas, including total assets, deposits and loans, profit as well as financial technology.
“We managed to smoothly carry out the ownership transfer transition and successfully listed the PRASAC corporate bond on the CSX,” Jun said, referring to Seoul-headquartered KB Kookmin Bank’s (KB’s) recent 70 per cent share acquisition of PRASAC for $603.4 million.
He noted that the institution raised $31.8 million through the subscription.
KB said it plans to buy the remaining 30 per cent stake in Prasac two years after the transaction and finalise the acquisition, local Korean-language News Briefing Cambodia reported in February.
CSX vice-chairman Ha Jong-weon said PRASAC’s positive performance reflects the trust that customers have in the MDI.
He said it “showed the strong ability to pay bond coupon and repay the principal to the bond holder amid the pandemic so that the bond-listed companies still have high credibility and public trust”.
In June, PRASAC signed a three- to five-year syndicated loan to the tune of $95 million with a group of banks led by Taiwan-based Taishin International Bank Co Ltd to support its lending activities.
That same month, PRASAC received another $150 million loan from KB that was divided into two tranches – a seven-year $50 million subordinated loan and a three-year $100 million credit facility.
The KB funds were part of PRASAC’s plan to strengthen its capital base and liquidity to support businesses growth, its executive vice-president Say Sony said then.
