Interesting, a lot of developments recently related to PRASAC.

“After the successful issuance in April, the corporate bond of PRASAC Microfinance Institution Limited (PRASAC) has been listed on the Cambodia Securities Exchange, allowing for the commencement of trading activities. The bond will be traded under the CSX symbol “PRA23A”. The PRASAC Bond is the sixth corporate bond to be listed on the CSX and the second to be guaranteed by the Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank.”

From:
http://en.freshnewsasia.com/index.php/e ... 36-00.html

wow, hard to accept some of the responses here, 18 points unsecured is, a good deal, banks paying 8-12 pts. is not guaranteed by anything nor should it be - and this is not a special issue here, anywhere on the planet this is good for anyone but the risk is there and its all disclosed upon deposit so why cry now? To think that things are normal going forward is to cry alone with no one caring

much love to you all

Prasac lowered their top deposit rate from 8% to 7.75%.

At this point Prasac is offering 7.5% on a monthly interest TD, and 7.5% on their bond that pays bi-annually. There is no liquidity on the bond at all, and no guarantee of payment for interest or principle for 3 years. Why would anyone buy the bond?

ABA TD is 3.7% with their bond paying 7.75%.

Phillip Bank (formerly Kredit) is down to a max of 6.5% (7% on THB). They're going to lose a lot of depositors.

The risk has gone up and the reward has gone down.

Tom G Baal wrote: ↑Thu Jun 11, 2020 10:23 am At this point Prasac is offering 7.5% on a monthly interest TD, and 7.5% on their bond that pays bi-annually. There is no liquidity on the bond at all, and no guarantee of payment for interest or principle for 3 years. Why would anyone buy the bond?

ABA TD is 3.7% with their bond paying 7.75%.

Phillip Bank (formerly Kredit) is down to a max of 6.5% (7% on THB). They're going to lose a lot of depositors.

ABA bond looks ok, but a 3 year tie in.

7.5% with Prasac is still good, providing their don't go belly up.

PRASAC Receives $150M Credit Facilities from KB Kookmin Bank to Strengthen its Capital Base, Liquidity and Expand its Lending
04/07/20 09:51
Phnom Penh (FN), Jul. 2 – Despite the severe impact on business environment caused by COVID-19 pandemic, PRASAC, the largest financial institution in Cambodia, has taken further steps to secure its financial stability by successfully receiving a 7-year subordinated loan of USD 50 million and a 3-year committed credit facility in the amount of USD 100 million from KB Kookmin Bank, one of the leading commercial banks in South Korea and a new shareholder of PRASAC Microfinance Institution Plc. since April 2020.

Chang-Su Choi, Head of Global Business Group of KB Kookmin Bank, said: “We are pleased to be working with PRASAC on this facility so that it can be channeled to micro, small and medium enterprises (MSMEs) in Cambodia. This move seeks to generate economy recovery and growth and employment amidst this unprecedented situation.”

Say Sony, PRASAC’s Executive Vice-President, said: “These funds are a part of building up strong capital base and liquidity to support our business need as well as enabling PRASAC to extend more loans to micro, small and medium businesses which are mostly owned by women to sustain their business operations and support their economic activities.”

He continued, “Despite this time of uncertainty, PRASAC has been able to garner trust from KB Kookmin Bank through these credit facilities. This shows the unshaken confidence in PRASAC and Cambodia’s financial sector as a whole and outlook for the country’s sustained economic recovery.”

It is worth noting that PRASAC Microfinance Institution Plc. (PRASAC) has microfinance deposit-taking institution (MDI) license from the National Bank of Cambodia (NBC). In June 2020, PRASAC remained the market leader in terms of total assets, gross loans, deposits from customers, and net profit. Through an extensive branch network of 180 outlets and 138 ATMs across the country, PRASAC offers a variety of financial products and services accessible to rural communities and micro-enterprises.
By the end of June 2020, PRASAC’s strong performance was demonstrated by its gross loans and deposits from customers which reached USD 2,659 million and USD 1,928 million, respectively. PRASAC’s total assets also increased more than USD 3,390 million.
Rest of article: http://en.freshnewsasia.com/index.php/e ... 07-24.html