Oslo, Norway - 17 November, 2011: NMI Global Fund today announced the disbursement of USD 4.5 Million in the form of a Senior Loan to PRASAC Microfinance Institution Limited ("PRASAC"). PRASAC is a large and well-established MFI with a long and profitable track record in Cambodia, operating in all 24 provinces in the country. In addition, over 90% of the borrowers are in the rural areas with roughly two-thirds of these being women. The Company currently serves more than 120 000 clients and has a Gross Loan Portfolio of over USD 135 million.
Njord Andrewes, the Investment Director of the NMI Global Fund, stated: "We are pleased to be working with the largest MFI in Cambodia. Cambodia remains one of the poorest countries in Southeast Asia with an estimated 58% of the population living below the International Poverty Line of income of less than USD 2 per day. PRASAC's recent financial rating (performed by Planet Rating) puts it among the top four institutions rated by the rating agency and is a testimony to the dedication and professionalism of the PRASAC Management Team and staff." Mr. Andrewes also added: "PRASAC provides the majority of its loans to rural clients, including 48% of loans for agricultural activities; this aligns well with the importance the NMI Global Fund places on lending to rural areas. Given the recent flooding activities in Cambodia, supporting this institution has now become even more important."
The Norwegian Microfinance Initiative (NMI) is a new and innovative strategic partnership between the Norwegian public and private sectors. NMI invests in microfinance institutions (MFIs) in developing countries and provides professional assistance and technical support to these institutions. The mission of NMI is to contribute to the empowerment of poor people and to the creation of jobs, wealth, and economic and social sustainability by investing in and supporting MFIs. The NMI Global Fund invests primarily in MIVs and may also make direct investments in Established MFIs on a Global basis. The NMI Global Fund has made ten investments to date.