New equity injection to finance expansion of largest local bank

Acleda Bank, the largest locally-owned banking institution, injected more than $36.5 million into its business to support its growth in Cambodia and abroad and finance the development of digital infrastructure.

The new funds come from stock dividends paid by the bank last year, according to a press release.

Chhay Soeun, chairman at Acleda, said the additional capital will be used to finance the institution’s expansion in Cambodia and beyond.

“Acleda continues to experience strong growth in its core domestic and overseas businesses with financial services and total assets increasing at a rate of more than 22 percent annually for the last five years,” he said.

“With the capital injection we also seek to maintain our capital base at the upper level of the regulatory prudency ratios,” he said, adding that the, above all, the new capital is needed to build public trust.

“By demonstrating that we have strong shareholders ready and willing to support the bank, we are creating confidence in our ability to protect our customers’ savings,” he said.

In Channy, Acleda’s president and group managing director, said the capital will also be used to build advanced digital infrastructure.

“We seek to strengthen our capital base and support the bank’s growth in the local and the international markets, as well as to develop our electronic and digital infrastructure to meet our strategic goals,” said Mr Channy.

He said the capital hike follows shareholders’ demand for higher dividends.

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