永豐金控

On May 4, 2024, the board of directors of SinoPac Holdings and its subsidiary Bank SinoPac approved Bank SinoPac to acquire 100% equity of Amret Plc. (Amret)[i] in three tranches, one of the leading financial institutions in Cambodia. The completion of this acquisition remains subject to satisfaction of customary closing conditions including relevant regulatory approvals.

SinoPac Holdings’ rationale of this acquisition stems from one of our main strategies i.e., “Boost overseas revenues and expand our international presence”. The Cambodian economy is one of the highest growth economies in Asia, with the IMF forecasting[ii] Cambodia GDP 2023-2028 compound annual growth of 6.3%. Cambodia also has one of the most attractive demographic profiles in Asia which will support growth long term. Amret is Cambodia’s largest microfinance deposit-taking institution by total assets, and Bank SinoPac as an existing lender to Amret since 2017 will be able to expand its overseas service network[iii] in Southeast Asia through this acquisition.

Amret’s current major shareholders[iv] are prestigious international development finance institutions who specialize in sustainable and responsible investment for financial inclusion, upholding the industry-leading customer protection standards. In the two years following this acquisition, The International Finance Corporation (IFC), the private sector investment arm of the World Bank Group, and FMO, the Dutch Development Bank, will continue to be shareholders and partners in Amret, and Bank SinoPac looks forward to collaboration with them, continue with ESG investment and client protection policies. Looking ahead, Bank SinoPac can further broaden its positive influence on sustainable finance by strengthening ESG capabilities.

As of 31 December 2023, Amret had 150 operating branches in 24 provinces across Cambodia, with total assets of c.US$2 billion. Bank SinoPac will acquire 80% of equity of Amret in the first tranche for approximately US$435 million, followed by two further tranches of 10% each, at the end of the first year and second year, respectively. Amret has a broad product suite covering traditional banking products, and an emerging digital capability. Combining Bank SinoPac’s resources and management expertise, Amret will be fully equipped in providing more diversified and convenient financial services to enhance customer value. This acquisition will also enable Bank SinoPac to extend its overseas network and exert more positive influence on sustainable finance. We hope to work together to achieve our corporate vision of “Together, a better life.”

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[i] Amret: Established in 1991 and is a leading microfinance institution in Cambodia. Official website: https://www.amret.com.kh/en/home

[ii] Data source: IMF World Economic Outlook database: October 2023

[iii] Bank SinoPac’s overseas network includes Hong Kong, Macau, U.S. (Los Angeles), Vietnam (Ho Chi Minh City, Hanoi), and China (Nanjing, Shanghai, Guangzhou, Chengdu)

[iv] Current major shareholders include:

• Advans SA SICAR (Advans S.A.) (owns 52.778%): Its mission is to respond to the need for financial services of small businesses and other populations who have ill-adapted, limited or no access to formal financial services through providing tailored financial services in a sustainable and responsible manner. Official website: https://www.advansgroup.com/
• Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO) (owns 19.995%): FMO is the Dutch Entrepreneurial Development Bank. Its mission is to enable entrepreneurs to increase inclusive and sustainable prosperity. Official website: https://www.fmo.nl/
• International Finance Corporation (IFC) (owns 19.995%): A member of World Bank Group. IFC improves the lives of people in developing countries by investing in private sector growth. It connects economic development with humanitarian needs to create real progress for the people and places that need it most. Official website: https://www.ifc.org/en/home