PG Impact Investments, a global impact investment firm, has made a debt investment to a microfinance institution, LOLC (Cambodia) Plc. (“LOLC Cambodia”), in order to help facilitate the continued growth of the institution’s portfolio of loans to low income clients living in rural Cambodia.
Despite over two decades of positive economic growth following a rapid transition from a centrally planned to a free market economy, over 8 million of Cambodia’s population of 15 million remains “poor” to “near poor”. Approximately 90% of the poor live in rural regions where access to basic services is limited. Additionally, 79% of Cambodia’s population does not have access to clean water and 58% does not have access to suitable sanitation services.
In response to this challenge, LOLC Cambodia has made it its mission to improve the lives of rural low income Cambodians by offering a diverse suite of financial and non-financial products and services that help them to become more resilient against external income shocks. As an example, LOLC has approximately USD 4 million portfolio of Water, Sanitation and Hygiene (WASH) loans that have enabled 6’000 clients to build a latrine. As of the second quarter 2017, the institution serves an active borrower base of over 200’000 low income Cambodians. LOLC Cambodia’s track record of helping these individuals out of poverty has been encouraging; the MFI reports that on average 7% of its clients moved out of the 150% National Poverty Line, “very poor” and “poor” category, in recent years.
LOLC Cambodia has delivered positive, resilient financial performance to date, growing its loan book to over USD 240 million while maintaining consistently high portfolio quality and healthy profitability. The institution’s financial results are a testament to prudent management and rigorous credit underwriting methodology.
Urs Baumann, CEO and co-founder of PG Impact Investments, stated: “We are proud to partner with an experienced microfinance institution that has consistently gone above and beyond to generate high levels of measurable financial and social return.”
About PG Impact Investments
PG Impact Investments was founded in 2015 with the vision that private investment, innovation and entrepreneurial talent can provide solutions to the challenges faced by our society, as well as create sustainable growth. PG Impact Investments is a private sector, mission-driven, global investment firm specializing in investment solutions aimed at delivering financial returns as well as creating a positive social and/or environmental impact. It manages investment strategies for an international clientele of professional investors who are seeking investment solutions that offer market-rate returns, while also helping to address pressing social or environmental challenges. All profits from the business activities of PG Impact Investments are transferred to PG Impact Investments Foundation. The Foundation supports social initiatives and social businesses ventures that otherwise would not receive funding through commercial investors or investment funds. Whilst being independent from Partners Group, PG Impact Investments entities are backed by Partners Group and its employees, and benefit from the global infrastructure, investment know-how and specialist resources of this leading global private markets investment manager.
About LOLC (Cambodia) Plc:
LOLC (Cambodia) Plc. is a rapidly growing, regulated microfinance institution with a focus on providing entrepreneurs and families at the base of the socio-economic pyramid with the economic opportunities to transform the quality of their lives. LOLC Cambodia is currently the 4th largest MFI in Cambodia by number of borrowers and gross loan portfolio. Due to its focus on customer service, commitment to responsible lending, innovative products, and fair and transparent pricing, LOLC Cambodia has become a trusted provider of financial services for Cambodians. LOLC Cambodia will continue its expansion in rural and urban areas and develop new, innovative financial products and services for its clients. With an experienced management team, strong governance and social commitment, LOLC Cambodia is well-positioned to further broaden its outreach and impact across Cambodia.
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