Cambodia’s leading microfinance institution Prasac has signed an agreement for a USD 20 million green lending facility with a responsAbility-managed fund focusing on climate financing.
The facility that took effect in October 2016, enables Prasac to pioneer green lending in Cambodia by offering its customers financing in the areas of energy efficiency and renewable energy.
With a diversified portfolio and a nationwide presence, Prasac is Cambodia’s largest microfinance institution in terms of loan portfolio and deposits. In addition to its substantial rural client base, which accounts for 90% of Prasac’s borrowers, the institution also serves middle-income households and SMEs with lending, savings and payment products.
Through the lending facility, Prasac plans to offer loans that improve energy efficiency and promote the use of renewable energy. Given the institution’s outreach, the offering will target a very broad section of the population. Focus areas will include loans for energy-efficient agricultural equipment, household appliances and rooftop solar installations.
Prasac and responsAbility are working in close cooperation to develop a green lending programme suitable for low-income households and farmers, Prasac’s predominant client base.
Speaking on behalf of Prasac, Say Sony, SVP & Chief Marketing Management, said: “This partnership will enable Prasac to offer our strong customer base targeted climate financing. responsAbility’s experience in working with financing institutions across the globe to bring about green lending perfectly complements our extensive market know-how and outreach.”
Antoine Prédour, Head Energy Debt Financing at responsAbility, added: “Working with Prasac will allow us to promote energy efficiency improvements and the generation of renewable energy with a strong focus on the low-income section of the Cambodian population. Climate financing will play an important role in ensuring that the country’s strong economic growth and rising prosperity don’t impact the environment negatively.”