Cambodia: Financial Intermediaries 01-03

Date Filed
11 Jun 2018
Status
Open
Phase
Compliance
Country
Cambodia

Case Tracker

Eligibility
June 11, 2018-July 10, 2018
Eligibility
Assessment
July 11, 2018-June 30, 2021
Assessment
Dispute Resolution
Compliance
Appraisal
Status as of July 01, 2022
CURRENT Status
Appraisal (COMPLIANCE)
Status as of July 01, 2022

Complaint Overview

Complainant

Confidential

Concerns

Social and Environmental Impacts

Cross-Cutting Issues
Risk Management

Project Information

Region
East Asia & the Pacific
Institution
IFC
Name & Number
Financial Intermediaries 01-03
Company
ABBank; IFC Banking Client in the Region
Sector
Financial Markets
Department
Finance and Markets
Category
FI
Commitment

ABBank: up to $75m; IFC Banking Client

Synopsis

Project Overview

IFC has an active equity investment with An Binh Commercial Joint Stock Bank (ABBank). Specifically, a $50 million quasi-equity  and $25 million A loan through an IFC project (no. 29745). The project proposes to forge a long-term partnership between IFC and ABBank by providing long term financing to the bank, both structured as senior and convertible debt instruments. According to IFC, its investment aims to allow the bank to maintain a healthy capital adequacy ratio while growing its loan portfolio. The loan will be geared towards supporting climate change initiatives and enhancing financing for eligible energy efficiency and cleaner production projects. The complainants have also alleged that IFC is exposed to the project via another IFC banking client in the region.

Complaint

In June 2018, CAO received a complaint regarding IFC Financial Intermediary clients, ABBank and another IFC banking client in the region—in relation to a range of social and environmental impacts regarding the Lower Se San Dam 2 project in Cambodia. These include concerns related to community resettlement, impacts on livelihoods, threats against community members opposing the project, damage to socioculturally significant sites such as ancestral graves and spiritual forests, and impacts on the fish population of the Mekong, Sesan, and Srepok Basins. The complainants have alleged that IFC is exposed to the project via another IFC banking client in the region.

CAO Action

CAO found the complaint to be eligible for further assessment in July 2018 and began an assessment. The assessment period was extended several times, due to the need to establish contact with additional stakeholders whose views were deemed relevant, and also due to challenges from the COVID-19 pandemic and travel restrictions after March 2020.

After an initial extension to the assessment period to January 2021, CAO extended the assessment again through January 2022 in order to ensure that the potential for dispute resolution was fully explored with all parties concerned. Ultimately, the parties did not reach a consensus to participate in a dispute resolution process. Details from the assessment are available in reports in English and Khmer, accessible via the “Case Documents” section below this page. Based on CAO Policy, the case was then transferred to CAO’s Compliance team in July 2022 for appraisal. The compliance appraisal process will determine whether further investigation of IFC’s environmental and social performance is warranted or not.

Status

CAO is now conducting a Compliance appraisal of this case. 

 

Status as of July 6, 2022

Case Documents

  • Assessment

    Assessment Report(s)
    Assessment Report - Cambodia FIs
    Jul 06, 2022
    English
    Assessment Report - Cambodia FIs
    Assessment Report - Cambodia FIs
    Jul 06, 2022
    ខ្មែរ
    Assessment Report - Cambodia FIs