Cambodia’s newest microfinance institution FASMEC Microfinance officially launched yesterday.

With a start-up capital of $1 million raised from a handful of investors on the new company’s board, the MFI hopes to expand its loan portfolio by the end of 2016.

“So by year end we may release $1 million in loans, and in 2016 we can find additional funding for $3 million to $5 million,” FASMEC Microfinance president Te Taing Por said.

Named after the Federation of Associations of Small and Medium Enterprise of Cambodia, the new MFI is a distinct entity of its own, Taing Por said yesterday.

However, FASMEC Microfinance will be looking to lend to the federation’s members under a more favourable fee structure, Taing Por added.

Targeting small- and medium-sized enterprises, the MFI will set up branches in Kandal, Takeo, Kampong Cham, Siem Reap and Battambang provinces.

Bun Mony, CEO of Sathapana Limited and president of the Cambodian Microfinance Association, welcomed Cambodia’s 54th MFI yesterday, saying that it would increase access to finance for Cambodia’s smaller businesses.