Banking & Finance Key Industries

Taiwan Bank SinoPac Ltd. Concludes 80% Acquisition of Cambodian Amret MFI in a Deal Worth $550 Million

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Taiwan Bank SinoPac Ltd. Concludes 80% Acquisition of Cambodian Amret MFI in a Deal Worth $550 Million

In a deal that was first reported on in May 2024, Bank SinoPac Ltd from Taiwan has completed its stake acquisition of Cambodian microfinance Amret MFI in what is one of the largest transactions ever concluded in Cambodia. It is anticipated Bank SinoPac Ltd will take full ownership of Amret MFI in the coming years.

Amret MFI began as a French-run NGO in the Kingdom in 1991 and offered microfinance loans in the provinces. By 2000, it became a private limited company, receiving its MFI license from the National Bank of Cambodia in 2001. By the end of 2023, Amret MFI had grown to include 150 operating branches in 24 provinces across Cambodia and was a full subsidiary of the Advans Group, a Luxembourg-based microfinance conglomerate. At the time of the deal, Amret MFI has more than 630,000 clients.

Bank SinoPac, has overseas operations in Hong Kong, Macau, the US, Vietnam, and China. They have been lending to Amret since 2017 and sought the deal as part of their expansion plans in Southeast Asia through this acquisition. The value of the deal is reported to be 1.8 times Amret’s book value of US $302 million in 2023.

Following a period of relevant regulatory approvals and approval from the National Bank of Cambodia (NBC) and Taiwan’s regulatory authority approvals, the deal closed in January 2025.

Amret MFI said in a statement, “Bank SinoPac now holds the majority shareholding in Amret. The former majority shareholder, Advans, has fully exited, while the development financial institutions FMO and IFC will remain, with a reduced interest of 10 per cent each for at least two years, to ensure a smooth transition. Bank SinoPac will then assume 100 per cent ownership of Amret.”

Bank SinoPac added, “Cambodia, with its dynamic economy and young, vibrant population, offers incredible potential, and we are eager to be part of its growth story. By partnering with Amret, 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."

Amret MFI And Bank SinoPac Ltd Partnership - Builds On Cambodian Financial Sustainability & Responsible Financial Development

Amret Chief Executive Officer, Mr Dinn Dos explained,  “All parties involved in this change in ownership have prioritised a smooth transition and ensuring the business continues to function as normal. Over time, we look forward to sharing strengths with Bank SinoPac to further Amret’s sustainable and responsible development. It is exciting to consider the possibilities when Bank SinoPac’s expertise and innovation are joined with Amret’s people and network.”

Mekong Strategic Partners, who were involved in the recent deal between Nham24 and Grab Cambodia, also managed this financial acquisition in an advisory capacity. John McGinley (Managing Partner of MSP) said online, "We are very grateful for their confidence and trust in us to manage this sale process. It was a lengthy and complex transaction, and definitely not without its challenges, but together, we got there in the end. Congratulations also to the outstanding Bank SinoPac Ltd. team, they appreciate and share the vision & mission of the previous owners and are committed and ready to guide Amret towards the next stage of its journey."

Of the stakeholders, former majority shareholder Advans has exited and McGinley explained via LinkedIn, “This acquisition, valuing Amret at approximately US$550m, represents a pivotal moment for Cambodia's financial sector as it demonstrates a very strong endorsement and confidence in Cambodia, its financial system, and its rapidly growing economy from leading international financial institutions.”

Finding The Right Buyer - ESG and Client Protection Were Key

Fellow Managing Partner at Mekong Strategic Partners, Stephen Higgins, said of the deal and finding the right buyer, “From the very beginning, the selling shareholders made clear the buyer had to be someone who would support Amret's mission, with a strong focus on ESG, including being willing to sign up to strong client protection measures. While it meant the transaction took longer, in Bank SinoPac Amret has a new owner who is just as committed to consumer protection as the outgoing shareholders.

Outgoing Chairman of the Board of Directors for Amret, Mr Claude Falgon, added, “When the selling shareholders recognised the time was right for Amret to enter its next phase of development, they prioritised finding a buyer who would not only meet regulatory standards but also commit to a market leading position for sustainability, ESG, and client protection. Bank SinoPac has demonstrated commitments and experience in these areas and, together with its parent company SinoPac Holdings, has been consistently recognised by the leading global assessors of sustainable, responsible and ethical businesses”

Cambodian Microfinance Landscape

Cambodia has the world’s largest proportion of microfinance borrowers relative to its population, with average loan sizes well over per capita annual income. The sector has a substantial financial footprint, particularly in rural areas where access to traditional banking services is seen as more limited.

  • By August 2024, microfinance institutions (MFIs) in Cambodia had disbursed loans totalling over US $5 billion, with total assets reaching approximately US $6.2 billion. 
  • The sector serves around 1.6 million loan accounts, with approximately three-quarters of Cambodians living in rural regions benefiting from these financial services.
  • The Cambodia Microfinance Association (CMA) is focused on promoting sustainable and inclusive finance practices.

Financial literacy and repayment of loans is a typical issue and the National Bank of Cambodia (NBC) is actively working to address these challenges by promoting responsible lending practices and enhancing customer protection measures.

Cambodian Financial Sector News