Taiwan’s SinoPac to Acquire Amret in Cambodia

Taiwan’s SinoPac Holdings has approved its subsidiary Bank SinoPac to acquire 100% equity of Amret Plc, one of the leading financial institutions in Cambodia, in three tranches. The completion of this acquisition remains subject to satisfaction of customary closing conditions including relevant regulatory approvals.

SinoPac Holdings’ rationale of this acquisition stems from one of its main strategies like Boosting overseas revenues and expand its international presence.

The Cambodian economy is one of the highest growth economies in Asia, with the IMF forecasting Cambodia GDP’s compound annual growth rate of 6.3% between 2023 and 2028. The southeast nation also has one of the most attractive demographic profiles in Asia which will support growth long term.

Amret is Cambodia’s largest microfinance deposit-taking institution by total assets, and Bank SinoPac as an existing lender to Amret since 2017 will be able to expand its overseas service network in Southeast Asia through this acquisition.

Amret’s current major shareholders are prestigious international development finance institutions who specialise in sustainable and responsible investment for financial inclusion, upholding the industry-leading customer protection standards.

Shareholders to Continue

In the two years following this acquisition, The International Finance Corporation (IFC), the private sector investment arm of the World Bank Group, and FMO, the Dutch Development Bank, will continue to be shareholders and partners in Amret, and Bank SinoPac looks forward to collaboration with them, and continue with ESG investment and client protection policies.

Looking ahead, Bank SinoPac can further broaden its positive influence on sustainable finance by strengthening ESG capabilities.

As of 31 December 2023, Amret had 150 operating branches in 24 provinces across Cambodia, with total assets of $2 billion. Bank SinoPac will acquire 80% of equity of Amret in the first tranche for approximately $435 million, followed by two further tranches of 10% each, at the end of the first year and second year, respectively.

Amret has a broad product suite covering traditional banking products, and an emerging digital capability. Combining Bank SinoPac’s resources and management expertise, Amret will be fully equipped in providing more diversified and convenient financial services to enhance customer value. This acquisition will also enable Bank SinoPac to extend its overseas network and exert more positive influence on sustainable finance. SinoPac hopes to work together to achieve our corporate vision of “Together, a better life.”

Bank SinoPac’s overseas network includes Hong Kong, Macau, Los Angeles, Vietnam (Ho Chi Minh City, Hanoi), and China (Nanjing, Shanghai, Guangzhou, and Chengdu).