GuarantCo, a member of the Private Infrastructure Development Group (PIDG), has entered into a landmark Counter-Guarantee agreement with the Credit Guarantee Corporation of Cambodia (CGCC), a move expected to bolster infrastructure financing and strengthen Cambodia’s local capital markets, according to CGCC’s statement issued on Wednesday.

The $10 million facility provided by CGCC will support GuarantCo’s existing $70 million guarantee for CamGSM Plc (Cellcard), helping the development finance institution manage its exposure across geography and sectors. The agreement is seen as a breakthrough in Cambodia’s risk-sharing framework and marks the first collaboration of its kind between an international guarantor and a local state-owned credit guarantee agency.

Nishant Kumar, Managing Director for Asia Investments at GuarantCo and Head of Coverage – Asia at PIDG, said the partnership will help attract more non-bank capital into Cambodia’s infrastructure development.

“We are pleased to partner with CGCC in pioneering a structure that facilitates local participation in infrastructure risk-sharing,” he said. “This initiative reflects our long-standing commitment to market development, sustainable financing, and deeper regional collaboration. By working with CGCC, we also aim to strengthen local debt capital markets and encourage long-term investment in Cambodia’s infrastructure.”

The transaction comes at a time when the Cambodian government is placing increasing focus on developing its capital markets and mobilising private sector investment to support infrastructure growth in sectors such as telecom, energy, and transport.

For CGCC, the agreement is more than just financial support—it also represents an opportunity to build internal capacity and expand its product offerings.

No Lida, CEO of CGCC, said, “We are pleased to kick-start this collaboration with GuarantCo through the Counter-Guarantee transaction as part of our long-term strategic partnership to support the development of Cambodia’s local bond market. This transaction has helped enhance CGCC’s bond guarantee capacity while supporting GuarantCo’s exposure limits. We look forward to future risk-sharing deals with GuarantCo.”

The facility also supports GuarantCo’s backing of Cellcard’s sustainability bond, one of the country’s prominent moves toward green and socially responsible financing.

Observers note that the transaction could set a new precedent for how local and international institutions can work together to unlock funding for infrastructure projects in emerging markets.

The agreement is expected to contribute to CGCC’s institutional development, giving it direct experience with complex, large-scale transactions and exposing it to international structuring and risk-sharing practices. This, in turn, could accelerate the evolution of Cambodia’s credit guarantee system in support of the broader infrastructure agenda.

Credit to: Khmer Times, Published on 16 July 2025