Cambodian Entrepreneur Building Limited (CEB) was established as a Cambodian non-government organization (NGO) in 1995, under the name of Cambodia Community Building (CCB), to offer financial and health education services to poor communities. In late 1999, CCB adopted a minimalist microfinance approach with focusing purely on credit loan and saving services only. As a result, the lending operations shifted gradually from predominantly village banking group loans to a mix of solidarity group lending and individual lending.

The organization registered with National Bank of Cambodia (NBC) in 2001 as a Microfinance Operator. Starting in 2000, the organization put forth their efforts to transform into a licensed microfinance institution (MFI). The process took approximately three years until we could completely obtain the license in 2003. The transformation focused on the mind set of the staff and clients to change from a humanitarian organization to a profit oriented organization. Finally, in February 2003 CCB incorporated as a private Limited Company, registered with the Ministry of Commerce under the new name of Cambodian Entrepreneur Building Limited (CEB LTD.), and obtained a license from National Bank of Cambodia in April 2003 to operate as an MFI (micro finance institution).

Highlights of the evolution:

1995- Cambodia Community Building NGO was established and registered with the Ministry of 1997 Interior as a local NGO, and obtained operating license in August 1996. CCB provided financial services and health education programs to poor communities.

1998 Community bank model of microfinance services and health education programs were offered to women in community banks. Starting in the middle of the year, different products and services were developed and offered to clients, including: solidarity group loans, individual loan products, US dollar currency loans, and the mobile banking model.

1999 Adopted a minimalist microfinance approach by providing purely microfinance services including credit and savings. Reduced the health education program until the end of 1999 when it was completely eliminated. Fully role out the individual lending product, USD loan currency and branch office services.

2000 CCB managed successfully to transform itself from an NGO type of microfinance provider into a professional MFI operating autonomously from donor funds and assistance by covering costs from its operation without any subsidized funding. Cambodian staff and management successfully led and managed operations to achieve self-financing and sustainability. CCB was assisted by total 83 staff, operating within 3 provincial branches plus one district branch serving 5,355 clients and portfolio outstanding at USD 525, 704.

2001 Interest rate charged to clients dropped by 50% due to the change in the calculation formula to the declining method. CEB gained access to commercial loans from Rural Development Bank. CCB increased its portfolio to USD 877,604, serving 3,975 clients and assisted by total 91 full time employees.

2002 Like a diamond in the rough, the transformation had been started, and the strategy was to transform the staff mindset from NGO thinking to profit oriented thinking. Many training courses were provided to assist the transformation under the support of MPDF and GTZ. By the end of 2002, all transformation documents were completed and submitted to related ministries. CCB increased it operation areas to 3 provincial branch plus 3 district branches, having portfolio outstanding at USD 1, 431, 205 with 6,014 active clients and 93 staff.

2003. CEB obtained a license from the Ministry of Commerce as a private limited company, and obtained a license from National Bank of Cambodia as an MFI under the new name of Cambodian Entrepreneur Building Limited (CEB). CCB NGO owned 81% of total registered capital and CEBEC owned 19%. Total shares registered were USD 372,000. The license provided CEB with access to international loans from other countries. BlueOrchard and Triodos were the first international Creditors to work with CEB. Increased operation area to 5 provincial branches and 3 districts, total 116 full time employees serving 8,493 active clients and USD 1,935,337 portfolio outstanding.

2004. ShoreCap International was very interested with the impressive output and the impact on poverty reduction of CEB services. Accordingly, they joined in sharing the mission by investing in up to 43% of the total shares of CEB. The new shares of ownership at the time were: ShoreCap 43%, CCB NGO 45%, and CEBEC 12%. Total share registered were USD1,158,470. CEB increased its operation into total 14 branches with 138 full time employees, serving 8,493 borrowers with USD 3, 702, 783 portfolios outstanding, by maintain on time repayment rate at 99%.

2005. CEB conducted operations in 5 provinces, operated within 14 branch offices, employed 200 staff, and served 11,119 total clients. The portfolio outstanding as of December 2005 was USD 6.7 million. The remarkable success was that CEB could manage its portfolio quality at a high level, by maintaining PAR after 30 days at 1% for several years as to date. CEB was looking ahead to bring in two more new investors to increase its equity and support its expansion plan.

2006 Two well-known investors from the Netherlands, FMO and Triodos Doen were interested in an equity position in CEB, and each invested 18.47% of total registered capital. Currently, CEB is composed of five shareholders; two are local and three are international. The new shareholders have brought in additional funds as well as diversified skills and experiences to the board of directors. Five directors represent a shareholding in CEB, while two are independent directors that, together, create a strong governance structure. Micro Banker for Windows (MBWin), a powerful integrated accounting software has been fully running in supporting the growth of CEB. This new facility has allowed CEB to extend operations to 7 new branches, increase its portfolio at 95% while improving the PAR after one day from 1.5% last year to 0.32% in 2006. In addition, CEB received the Financial Transparency Award from CGAP for this year's operation. Portfolio outstanding was USD 12.3 millions and 15,112 active borrowers with total full time employees 280 operating within 21 branches office..

2007 It was critical in CEB records as many achievement has made through out the year, resulted from its readiness to equip all requirements since 2006 such as a powerful MBWin accounting package, each department has been functioned very well that included: Operation, Finance, Administration, Information Technology, Human Resources, Marketing and Internal Audit that enable CEB to manage its business very well. 6 more provincial branches plus other two district branches have been established during the year that make total branch operation to 28 and meeting break even after six months of starting the operation. Portfolio growth at 82% while maintain on time repayment at 99.96% and making an impressive return on equity at 31%. Total portfolio outstanding at year ended was USD 22.4 millions with active borrowers 26,048, serving by total 465 full time employees. CEB plans ahead to remain as the leading MFIs for long run. Board of directors approved to relocate head office to a new building located on Monivong Boulevard which provides a larger space to fit the growth. CEB found its success in piloting deposit taking and seriously committed to obtain deposit taking license in the coming year.

2008 Microfinance industry growing very fast led to increase strongly in competition among operators. CEB's management and staff put focus on strengthening capacity in management to ensure long term success and sustainability. CEB Ltd. plans to expand to 33 branches office, reaching to 36,770 clients and portfolio outstanding at USD 35 millions with 620 employees by the end of December 2008. Cost reduction is the strategy to reduce interest rate charge to client. In response to this plan management and staff committed to increase its productivities and efficiency together reduce cost of fund. To reduce cost of fund CEB is seriously attracting public deposit as belief that will bring a cheaper source and provides a long term funding strategy to support its growth plan. To attract deposit many strategies have been defined: building trust in the market by showing transparency in management, improving service quality together with products innovation, renovating offices to be more professional and finally we decided to change original long name of Cambodian Entrepreneur building Limited into a short form in Khmer call SATHAPANA Limited in belief that this short name will enhance in marketing purpose.


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