A customer conducts a financial transaction at one of Amret’s branches. Supplied
Bank SinoPac, a Taiwanese bank, has officially become the majority shareholder of Amret Microfinance Institution (MFI), acquiring an 80% stake. The agreement was finalised after the regulatory authorities of both institutions reached a consensus. Bank SinoPac is expected to fully acquire 100% of Amret's shares within the next two years.
The transaction, valued at approximately $550 million, represents a significant milestone for both institutions and reflects Bank SinoPac’s strategy of expanding its presence in Southeast Asia.
Other significant shareholders, including the International Finance Corporation (IFC) and the Dutch entrepreneurial development bank (FMO), have also sold off half of their shares.
Bank SinoPac is a major commercial bank, with business activities in several countries, including China, Hong Kong, Vietnam and the US. The acquisition of shares in Amret is part of the bank’s strategy to expand its operations into the growing Southeast Asian market, which is seen as a region with high potential for development.
Amret is a leading financial institution in Cambodia. With operations across 150 branches, it serves over 630,000 customers and holds $2 billion in assets.
Hong Vannak, an economist at the Royal Academy of Cambodia, told The Post on January 16 that buying and selling shares in financial institutions is a common practice worldwide, and it is difficult to assess the situation of a particular institution solely based on such transactions.
He added that, in this case, the acquisition of shares by a global financial institution like Bank SinoPac reflects positively on Cambodia's financial sector. Before making such an acquisition, Bank SinoPac likely sent experts to assess both Amret's operations and Cambodia's economic conditions.
“The entry of a new major shareholder may inject additional capital into Amret, helping to expand its market and increase trust among customers. This, in turn, could attract more foreign investment into Cambodia,” he said.
He also suggested that the presence of foreign financial institutions in Cambodia would make it easier for foreign investors to transfer their capital to the Kingdom.
An Amret statement explained that Bank SinoPac views Cambodia as a rapidly growing economy with a young, dynamic population, offering significant potential. The bank aims to be a part of Cambodia’s development by forming partnerships and acquiring shares in Amret, thus expanding its presence in the Southeast Asian region.
Bank SinoPac also emphasised that its continued partnership with IFC and FMO will ensure high standards in customer protection and sustainable financial services, focusing on environmental, social, and governance (ESG) principles.
Amret chief executive officer, Dinn Dos, expressed his excitement and extended an official welcome to Bank SinoPac, for its arrival in Cambodia.
“Bank SinoPac has been a long-term lender to Amret, and over the years, the two institutions have had a close partnership, recognising each other's values,” he said.
“We are not only expanding our footprint in Southeast Asia but also reinforcing our commitment to helping communities thrive and creating long-term opportunities for prosperity and well-being,” Bank SinoPac stated. The partnership includes collaboration with FMO and IFC, two institutions recognized for advancing responsible investment and financial inclusion.
