Geoffrey Tan, Asia-Pacific representative of Opic, told an AmCham breakfast briefing that Opic has earmarked US$4 billion (Bt133 billion) in finance capital for Asia, though its existing investments in Southeast Asia remain low compared to those in Africa and Latin America.

The loan facilities that the agency offers help to provide economic growth and “long-term stability structure”. “If our investments don’t work, the developmental effects we want to see won’t happen,” he said.

However, Opic had a solid track record and very few of its investments had ever failed, he said.

Founded in 1971, Opic is a US government agency “that helps American businesses invest in emerging markets”.

The agency provides loans – no smaller than $500,000, and usually calculated in the millions – to well-established private sector companies in these markets.

Since 2013, Opic has committed over $200 million in finance to six companies in Cambodia, mostly financial institutions, according to its website.

Among recent investments is a $5-million long-term loan facility to Thanakea Phum (Cambodia) aimed at supporting the disbursement of home improvement loans to low-income Cambodians.

The local microfinance institution, majority owned by a fund managed by US-based DWM Asset Management, has become one of Opic’s most successful investments in the region, according to Tan.

He said he was “optimistic” about Opic’s investments in Cambodia, especially its cooperation with the country’s biggest financial institution, Acleda Bank.

Opic said last year that it would provide $125 million over seven years to Acleda Bank to support lending to small and medium enterprises (SMEs).

It has also provided $30 million to the bank as part of a joint initiative by Goldman Sachs and the International Finance Corporation to support local women entrepreneurs. While Opic said in 2015 that it was interested in supporting Cambodian SMEs directly, Tan said the transition to SME finance would need more time.

“We’re not well-suited to back small start-ups or commercial activity,” he said. “It’s quite restrictive. We would like to see this shift.”