GL Finance, Cambodia’s first financial leasing company, is expanding its business through the leasing of agricultural machinery from Thailand-based Siam Kubota Corporation Company Limited in an effort to tap into a growing market.

Kubota, a joint venture between Kubota Corporation (Japan) and Thailand’s Siam Cement Group, signed the authorising Memorandum of Understanding last week with GLF’s parent company.

“Cambodia is an agricultural-based economy and farm machineries are crucial to support its economic growth,” said Mitsuji Konoshita, chairman and chief executive of GLF’s parent Group Lease Public Company Limited.

“Therefore, there are still plenty of growth potentials in the future.”

Kubota plans to establish its own company called Kubota Cambodia Co Ltd in Phnom Penh in 2014. Sales are forecast to reach 5 billion baht ($155 million) in 2015.

Set up last year, GL Finance focuses on leasing motorbikes and has 15 points of sale in Phnom Penh, Battambang and Rattanakiri, with plans for 26 more this year.