ORIX Announces Additional Investment in the Largest Cambodian Bank ACLEDA
Aug 24, 2015
TOKYO, Japan - August 24, 2015 - ORIX Corporation ("ORIX"), a leading integrated financial services group, today announced its decision to make additional investment in the largest Cambodian commercial bank ACLEDA Bank Plc ("ACLEDA") in which ORIX first invested in the bank in February, 20141 . ORIX is scheduled to additionally acquire 6.25% of ACLEDA's shares in around September, 2015, having received approval for the share acquisition from the National Bank of Cambodia. Together with ORIX's existing holding of ACLEDA's shares at 6.0%, ORIX's total shareholding in ACLEDA will become 12.25% once the additional investment is completed.
With this additional investment, ORIX will secure one seat on ACLEDA's board. ORIX, through the participation in the management, such as the board of directors' meetings, will further enhance its relationship with ACLEDA as a business partner and contribute to ACLEDA's new business development and corporate value, leveraging ORIX's know-how accumulated through its financial services operations in Asia.
ACLEDA is Cambodia's largest commercial bank which started as an NGO specializing in micro-finance in 1993, with the purpose of developing micro-enterprises and supporting job creation. ACLEDA converted from an NGO to a bank in 2000 and introduced a governance structure separating management and oversight, creating a highly creditworthy and transparent management structure.
At present, ACLEDA has 256 offices and branches throughout Cambodia. Further, ACLEDA has pursued expansion of its business fields in the Indo-China region where further economic growth is expected by establishing a bank in Laos in 2008 and a micro finance company in Myanmar in 2012.
With the lowest level of GDP per head of population in the ASEAN region, and as a potential manufacturing center which provides a low cost young workforce with approximately half of the population under 24 years old, Cambodia is receiving considerable attention. Cambodia's real GDP growth rate is expected to remain as high as 7% annually.
Looking ahead, ORIX will continue to expand its operations with a focus in the field of financial services in the ASEAN region where growth is anticipated.
1 For details relating to the announcement on this investment can be accessed at
|Company Name||ACLEDA Bank Plc|
|Location||Phnom Penh, Cambodia|
|Representative||Dr. IN Channy (President and Group Managing Director)|
|Business Locations||Cambodia (256 locations), Laos (41 locations),
Myanmar (6 locations)
(as of end of July 2015)
|Total Asset||US$3,140 million
(Consolidated basis, as of end of December 2014)
|Net Income||US$81 million
(Consolidated basis, for the fiscal year ended December 2014)
Corporate Planning Department
ORIX Corporation (TSE: 8591; NYSE: IX) is a financial services group that provides innovative products and services to its customers by constantly pursuing new businesses. Established in 1964, from its start in the leasing business, ORIX has advanced into neighboring fields and at present has expanded into lending, investment, life insurance, banking, asset management, automobile-related, real estate and environment and energy-related businesses. Since its first overseas expansion into Hong Kong in 1971, ORIX has spread its businesses globally by establishing locations in a total of 36 countries and regions across the world. Moving forward, ORIX aims to contribute to society while continuing to capture new business opportunities. For more details, please visit our website: http://www.orix.co.jp/grp/en/
Caution Concerning Forward-Looking Statements:
These documents may contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under "Risk Factors" in the Company's annual report on Form 20-F filed with the United States Securities and Exchange Commission and under "4. Risk Factors" of the "Summary of Consolidated Financial Results" of the "Consolidated Financial Results April 1, 2014 - March 31, 2015."
- View PDF of this release