Sovereign Wealth Fund Money Invests in Cambodian Banking Industry
Regional institutional investors are becoming a stanchion for the underdeveloped banking industry in Cambodia. In 1975, during Khmer Rouge’s rule, all banks were shut down – money was abolished. After their downfall in 1979, the Riel, Cambodia’s currency, was introduced. The National Bank of Cambodia (NBC) was created as the central bank.
Today, more than 90% of the Cambodian population does not have a bank account – according to various public sources.
Fast forward a few decades, Fullerton Financial Holdings, a sovereign wealth enterprise of Temasek Holdings, entered into a joint venture with Canadia Bank. The US$ 38 million joint venture will be called Cambodia Post Bank. Singapore’s state-owned investor is interested in Asian financial institutions, investing in China, Malaysia and other nearby countries. Financial services make up a heavy proportion of Temasek’s investment portfolio.
The ownership structure for Cambodia Post Bank:
- Canadia Investment Holding – 50%
- Fullerton Financial Holdings – 45%
- Cambodia Post – 5%
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