Baar-Zug, Switzerland, 14 May 2019
PG Impact Investments, a global impact investment firm, has made a mezzanine debt investment into i-Finance Leasing PLC (“i-Finance” or “the Company”), which provides leases to low-income individuals and micro-small and medium enterprises (“MSMEs”) in Cambodia to purchase productive assets such as motorbikes, cars and appliances or equipment.
i-Finance’s mission is to improve the lives of underserved Cambodian individuals and MSMEs by offering affordable and accessible leases. Most Cambodian financial institutions, including microfinance institutions, typically require land collateral in order to advance loans. i-Finance, however, is able to provide leases solely secured by the asset itself. This allows the Company reach more underserved and lower income individuals. This commitment to impact is reflected in i-Finance’s customer base: over 50% of its customers are first-time borrowers and the average household income of its clients is USD 4.8k, lower than that of top Cambodian microfinance institutions.
PG Impact Investments’ mezzanine debt investment will support i-Finance at an inflection point for growth. PG Impact Investments will work with the Company on value creation projects, all with the goal to extend the Company’s reach to clients and expand its geographic footprint across the country.
Urs Baumann, CEO of PG Impact Investments, stated: “We are excited to partner with i-Finance to further its success in serving clients that are often left behind by the traditional financing sector. i-Finance plays an important role in increasing earning potential for its customers and we are thrilled to actively help catalyze its further growth”.
Lav Pokeat, CEO of i-Finance, stated: “The funding from PG Impact Investments will support our effort to provide affordable financing solutions to an inclusive and broad customer base in Cambodia and we look forward to growing our partnership and welcome the engagement of PG Impact Investments and its partners across the business”.
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 I-Finance Leasing
i-Finance leasing is a non-bank financial institution that offers leases to low-income individuals and MSMEs in Cambodia to purchase productive assets such as motorbikes, cars and appliances/equipment. The Company is based in Phnom Penh and has a branch presence in Siem Reap and Sihanoukville. i-Finance’s mission is to improve livelihoods of Cambodia’s underbanked, asset-poor individuals and MSMEs that are beyond the reach of traditional lenders. The Company’s leasing products allow for deeper reach into the income pyramid. The lease products allow clients to improve their living standards through investment in productive assets and to improve their credit scores to become eligible for cheaper, bank funding in the future.