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CGCC and Cambodia Chamber of Commerce (CCC) Co-organized a Workshop on “Capacity Building and Improving Financial Literacy of SMEs” in Oddar Meanchey

Posted on by Sorn Chhorvyvatey

On 09 September 2024, Credit Guarantee Corporation of Cambodia (CGCC) and Cambodia Chamber of Commerce (CCC) co-organized a workshop on “Capacity Building and Improving Financial Literacy of SMEs” in Oddar Meanchey province in collaboration with Siem Reap-Oddar Meanchey Chamber of Commerce with around 50 participants from Management and staff of Participating Financial Institutions (PFIs) and business owners in Oddar Meanchey province.

The workshop was presided over by Mr. Un Sadet Vice President of Cambodia Chamber of Commerce, chapter based in Siem Reap-Oddar Meanchey, Mr. No Lida, Deputy CEO of CGCC, Mr. Tith Kamrong, Financial Literacy Expert and Founder of Rithipul Company, and the presentations by Ms. Lim Chanthida, Director of Centralized Operations, Ms. Vong Sovina, Senior Executive of Product Development and Cooperations and representatives from Acleda Bank and Canadia Bank as well.

Through this workshop, business owners gained more understanding of the benefits of credit guarantee and especially understand the readiness to obtain loans from banks and microfinance institutions, as well as understanding how to use loans responsibly and correctly and have the opportunity to practice and get feedback Improved feedback from trainers / experts on loan readiness.

CGCC visits PFIs provincial branches in Oddar Meanchey, Banteay Meanchey (Poipet) & Battambang to Enhance Collaboration on the Credit Guarantee

Posted on by Sorn Chhorvyvatey

From 10 to 24 September 2024, CGCC team led by Ms. Lim Chanthida, Director of Centralized Operations of CGCC, visited provincial branches of selected Participating Financial Institutions (PFIs) to discuss with the management and staff of the selected PFIs regarding the implementation of CGCC’s credit guarantee schemes and to increase more awareness of the credit guarantee. The selected PFIs in 3 provinces include:

– Oddar Meanchey:  Acleda Bank, LOLC MFI & Maybank

– Banteay Meanchey (Poipet): Canadia Bank, ABA Bank, and Prince Bank

– Battambang: Phillip Bank and FTB Bank

The discussions with CGCC PFIs’ provincial branches in these 3 potential provinces provided opportunities for both CGCC and PFIs to enhance mutual understanding of credit guarantees and opportunities for PFIs to increase lending to potential borrowers that lack collateral when requesting loans.

 

 

CGCC’s Workshop on “Investment Support Facility (ISF)” in Siem Reap Province

Posted on by Sorn Chhorvyvatey

On 7th September 2024, Credit Guarantee Corporation of Cambodia (CGCC) organized a workshop on “Investment Support Facility (ISF)” in Siem Reap province in, designed to share about Investment Support Facility (ISF), a joint-project under CAPFISH-Capture: Post-harvest Fisheries Development Project jointly implemented by the Fisheries Administration and the United Nations Industrial Development Organization (UNIDO Cambodia), co-funded by the European Union, and having CGCC as a project manager. The workshop was presided over by Mr. Tea Kim Soth, Director of Siem Reap Provincial Department of Agriculture, Forestry and Fisheries, Mr. Thinny Sothy, Siem Reap Provincial Fisheries Administration, Mr. No Lida, Deputy CEO  of CGCC, Ms. San Sokrina, Manager of Product Development and Cooperation, Mr. Pong Leang Oun, UNIDO’s National Private Sector Development Coordinator, including the participation of the management and staff of Participating Financial Institutions (PFIs) and entrepreneurs who are small and medium enterprises about 70 participants.

The seminar is also a forum for stakeholders to learn more about the needs of business owners in the post-harvest fisheries sector in obtaining guaranteed loans to develop their business, especially in response to the lack of collateral.

The Signing of MOU between SERC and CGCC and Workshop on “Benefits and Opportunities of Issuing Guaranteed Bonds in Cambodia”

Posted on by Sorn Chhorvyvatey

In the Morning of Friday, August 30, 2024, with the honor permission from H.E. Dr. Aun Pornmoniroth, Deputy Prime Minister, Minister of Economy and Finance and Chairman of the Non-Bank Financial Services Authority (FSA), H.E. Sou Socheat, Delegate of the Royal Government in Charge as Director General of the Securities and Exchange Regulator of the  Cambodia (SERC) and Mr. Wong Keet Loong, Chief Executive Officer of Credit Guarantee Corporation of Cambodia (CGCC) signed a Memorandum of Understanding (MoU) on “Collaboration in Promoting the Development and the Issuance of Guaranteed Bonds” and co-organized the workshop on “Benefits and Opportunities of Issuing Guaranteed Bonds in Cambodia” under the high presidency of H.E. Ros Seilava, Secretary of State of the Ministry of Economy and Finance and Chairman of CGCC and Vice Chairman of the Board of FSA at FSA building.

This MoU signing ceremony was organized to promote the development of securities sector and the issuance of guaranteed bonds by supporting companies and financial institutions to obtain additional capital through the issuance of bonds including green bonds, social bonds, sustainability-linked bonds, and sustainability bonds which are supported and guaranteed of repayment in case default by local guarantor in order to enhance local capital mobilization more effectively. Back to back with this MoU signing ceremony, both institutions also co-organized the workshop on “Benefits and Opportunities of Issuing Guaranteed Bonds in Cambodia” in order to raise awareness and disseminate the requirements to obtain guarantees for bonds and for small and medium enterprises (SMEs) and related institutions as well as highlight the benefits and opportunities of issuing guaranteed bonds.

In this event, H.E. Delegate stated that “Through today’s MoU, it will attract more companies, including SMEs, to seek financing through the securities market, and will also provide additional benefits for listed companies having demands for additional sources of financing in the form of bond issuance or other forms of debt, with the opportunities to obtain guarantee with special rate.”

Mr. Wong Keet Loong also stated that “As the first and only bond guarantee institution in Cambodia, CGCC will play a key role in developing the growth of bond issuance listed on the Cambodia Securities Exchange (CSX). The credit rating of CGCC at khAAA will enhance the credit rating of the issuer thus giving added confidence to bond investors. This MoU with SERC is strategic to develop and work towards enhancing the securities framework to promote higher bond issuance to raise funding and attract more domestic and foreign investors.”

H.E. Ros Seilava​ has added that “This MOU will enable both parties to achieve the shared goal in terms of mutually supporting SERC for the development of the bond market, and CGCC to be the leading bond guarantee institution in Cambodia for improving financial inclusion and developing SMEs in Cambodia. At the same time, this cooperation will bring a positive impact on the bond market in Cambodia by encouraging the issuance and investment of more bonds, including green bonds, social bonds, and sustainable bonds.”

This event was attended by senior representatives including: General Secretariate of FSA and regulators under FSA, CSX, Cambodia Association of Securities Firms, Cambodia Chamber of Commerce, Young Entrepreneurs Association of Cambodia, the Association of Bank in Cambodia, Rating Agency of (Cambodia) Plc., listed companies and potential listed companies and media partners with a total of 100 participants. The workshop was sharing by resources speakers who enrich of professional experiences from SERC, CGCC, Telcotech LTD., Royal Group Securities Plc. and Prudential (Cambodia) Life Assurance Plc.

 

Means of Contact:

SERC

Research, Training, Securities Market Development and International Relations Department via mobile number (855) 95 775 772 (Khy Pochchhing) or Email: [email protected]

CGCC

Division: Strategy and Business Development Department via mobile number (855) 78 222 186 (Sorn Chhorvyvatey) or Email: chhorvyvatey.sorn@cgcc.com.kh

 

About SERC

SERC is an authority to supervise, monitor and develop the securities sector in the Kingdom of Cambodia that having seen the Preah Reach Kram No. NS/RKM/0121/003 dated January 16, 2021 that promulgate the Law on the Conduct and the Organization of the Non-Bank Financial Services Authority and having seen the Preah Reach Kram No. NS/RKM/ 1007/028 dated October 19, 2007 that promulgate the Law on The Issuance and Trading of Non-Government Securities and Anukret No. 97/ANKR/BK dated July 23, 2008 on the Organizing and Functioning of the Securities and Exchange Commission of Cambodia. SERC has its official website: www.serc.gov.kh and official Facebook page: www.face​book.​com/serc.gov.kh.

 

About CGCC

CGCC is the only credit guarantee corporation in Cambodia, established by the decision of Samdech Akka Moha Sena Padei Techo Hun Sen, as a state-owned enterprise under the technical and financial guidance of the Ministry of Economy and Finance. The primary mission of CGCC is to provide credit guarantees to improve financial inclusion and support the growth of SMEs in Cambodia. On 31 January 2024, CGCC launched as the First Cambodian Bond Guarantor after being accredited by the SERC) and rated khAAA, the highest rating by the local rating scale, by the Rating Agency of Cambodia on 19 December 2023. CGCC aims to provide guarantees on local corporate bond issuances on the CSX to support local companies raising funding and the development of the securities sector in Cambodia. The official website of CGCC: www.cgcc.com.kh and official Facebook page: https://www.facebook.com/officialcgcc.

 

 

CGCC Pays a Courtesy Visit and Discuss With the Management Team of the Ministry of Ministry of Mines and Energy

Posted on by Sorn Chhorvyvatey

On 22 August 2024, at the Ministry of Mines and Energy, Mr. Wong Keet Loong, CEO of CGCC, led the CGCC team to pay a courtesy visit and discuss with the management team of the Ministry of Ministry of Mines and Energy (MME).

Mr. Wong expressed appreciation for the warm welcome of management team of MME led by H.E. Suy Dimanche, Secretary of States  of MME and shared the progress of CGCC in providing credit guarantees as well as the strategic plan of CGCC, which needs the cooperation and support from MME.

This meeting will provide an opportunity for CGCC to explore the feasibility of leveraging the credit guarantee mechanism to support the development of small and medium enterprises in the energy sector, including electricity, solar energy, fuel oil, petroleum, and mines, with the support of the MME.

CGCC Organized a Training Course on “Public Speaking and Presentation Skills”

Posted on by Sorn Chhorvyvatey

From August 16 to 17, 2024, CGCC organized a training course on “Public Speaking and Presentation Skills” for CGCC”s staff at the CGCC’s Office.

CGCC strongly believes that this training course will build capacity and improve the presentation skills of CGCC staff, contributing to their work performance and CGCC’s development as a whole, especially for the staff’s long-term capacity development beyond providing staff with the opportunity to contribute to CGCC through their own works.

CGCC 2nd Town Hall Meeting 2024 on “Milestones in Q2 2024 and Strategy Plan in Q3 2024”

Posted on by Sorn Chhorvyvatey

On 01 August 2024, CGCC organized the Quarterly Town Hall meeting, a gathering of all management and CGCC staff to update on the progress and milestones of CGCC in the 2nd quarter of 2024 as well as share the strategy and action plans of all respective departments of the 3rd quarter of 2024.

This Town Hall Meeting was attended by all management and staff and was not only to share the progress report and plans from all departments but also for a dialogue platform to openly discuss and obtain recommendations from management on the direction of CGCC’s operations and vision in improving financial inclusion and developing SMEs in Cambodia.

CGCC Collaborates with GuarantCo and PIDG to Accelerate Financial Inclusion and Enhance Investment in Sustainable Infrastructure in Cambodia

Posted on by Sorn Chhorvyvatey

GuarantCo, the Private Infrastructure Development Group (PIDG) and the Credit Guarantee Corporation of Cambodia (CGCC) have signed a Memorandum of Understanding (MoU) which is intended to accelerate sustainable financial inclusion and increase investment opportunities in Cambodia.  The collaboration will also facilitate the scale up of CGCC’s capacity through involvement in a range of transaction types with GuarantCo and PIDG Technical Assistance (TA).

Having completed three transactions in Cambodia, GuarantCo is seeking to develop CGCC’s capital market guarantee capability via the PIDG Credit Enhancement Facility initiative. This programme aims to increase the availability of onshore local currency guarantees in target markets through partnering with local entities and utilizing products from across the PIDG Group, in this case re-guarantee facilities from GuarantCo and technical assistance from PIDG TA.

The MoU being signed is the first step towards a broader Framework Agreement, which both parties hope to close and execute later this year, covering syndication of GuarantCo guarantee exposure to CGCC and vice versa, as well as technical assistance.

 

The Technical Assistance programme will assist CGCC to develop key guarantee documents and engage a transaction counsel to advise on the facility documentation, as well as provide capacity building support on credit, investment and Sustainable Development Impact management processes.

Philippe Valahu CEO of PIDG, said: “Local financing solutions are an essential part of our 2030 strategy and the establishment of in-country credit enhancement facilities is a key objective to help develop local markets. Signing this Memorandum of Understanding with the Credit Guarantee Corporation of Cambodia will help expedite this work.”

Layth Al-Falaki, CEO of GuarantCo, said: “We are proud to have signed this Memorandum of Understanding with the Credit Guarantee Corporation of Cambodia and to be able to mobilise guarantee capacity to help CGCC expand to undertake transactions in progressive sustainable financing through the local capital markets, in line with PIDG and GuarantCo’s strategic plans. GuarantCo’s engagement in Cambodia started in 2022 through transactions with First Finance and Royal Railway followed by Cellcard in 2023. Through this MoU with CGCC, we are continuing our momentum in the country to the advantage of Cambodians who will benefit from improved infrastructure.”

Wong Keet Loong, CEO of the Credit Guarantee Corporation of Cambodia, said: “We are honoured to have the opportunity to work with GuarantCo, an established international guarantee provider, funded by seven G12 governments including the United Kingdom, Switzerland, Sweden, Australia, the Netherlands, Canada and France. CGCC will benefit from the technical expertise to embed best practices into our bond guarantee processes.  We are excited with this collaboration and look forward to the structured facility which will expand our guarantee capacity.”

 

About GuarantCo

GuarantCo mobilises private sector local currency investment for infrastructure projects and supports the development of financial markets in lower income countries across Africa and Asia. GuarantCo is part of the Private Infrastructure Development Group (PIDG) and is funded by the governments of the United Kingdom, Switzerland, Australia and Sweden, through the PIDG Trust, the Netherlands, through FMO and the PIDG Trust, France through a stand-by facility and Global Affairs Canada through a repayable facility. GuarantCo is rated AA- by Fitch and A1 by Moody’s. Since 2005, GuarantCo has enabled USD 6.8 billion of total investment and USD 5.7 billion of private sector investment, giving 44.7 million people access to infrastructure and creating around 243,000 jobs. GuarantCo’s activities are managed by GuarantCo Management Company which is part of Cardano Development www.guarantco.com

 

About PIDG

The Private Infrastructure Development Group (PIDG) is an innovative infrastructure project developer and investor which mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and south and south-east Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). PIDG delivers its ambition in line with its values of pioneering, partnership, safety, inclusivity and urgency.

PIDG offers Technical Assistance for upstream, early-stage activities and concessional capital; its project development arm – which includes InfraCo Africa and InfraCo Asia – invests in early-stage project development and project and corporate equity. PIDG credit solutions include EAIF (the Emerging Africa Infrastructure Fund), one of the first and more successful blended debt fund in low-income markets; GuarantCo, its guarantee arm that provides credit enhancement and local currency solutions to de-risk projects; and a growing portfolio of local credit enhancement facilities, which unlocks domestic institutional capital for infrastructure financing.

Since 2002, PIDG has supported 233 infrastructure projects to financial close, which provided an estimated 228 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Global Affairs Canada, Germany, and the IFC. pidg.org

 

About Credit Guarantee Corporation of Cambodia

CGCC is the only credit guarantee corporation in Cambodia, established by the decision of Samdech Akka Moha Sena Padei Techo Hun Sen, as a state-owned enterprise under the technical and financial guidance of the Ministry of Economy and Finance. The primary mission of CGCC is to provide credit guarantees to improve financial inclusion and support the growth of SMEs in Cambodia. On 31 January 2024, CGCC launched as the First Cambodian Bond Guarantor after being accredited by the Securities and Exchange Regulator of Cambodia (SERC) and rated khAAA, the highest rating by the local rating scale, by the Rating Agency of Cambodia on 19 December 2023. CGCC aims to provide guarantees on local corporate bond issuances on the Cambodia Securities Exchange (CSX) to support local companies raising funding and the development of the securities sector in Cambodia. www.cgcc.com.kh

Entrepreneurship Program Initiative of CGCC (EPIC) 2nd series of 2024

Posted on by Sorn Chhorvyvatey

On 20 July 2024, at the Business Development Center, Credit Guarantee Corporation of Cambodia (CGCC) and the Young Entrepreneurs Association of Cambodia (YEAC) co-organized the Entrepreneurship Program Initiative of CGCC (EPIC) 2nd series of 2024 on “MSME’s Best Practices in Obtain and Effectively Managing Formal Financing”, supported by Feed the Future Cambodia Harvest III of USAID,  highly participated by Mr. NimishJhaveri, Chief of Party of Cambodia Harvest III, Mr. Sar Kinal, Executive Vice President of YEAC, and Mr. No Lida, Deputy Chief Executive Officer of CGCC, and distinguished speakers and 51 trainees from Micro, Small, and Medium Enterprises (MSME) in Agriculture sector from Phnom Penh, and 12 Provinces.

Through the EPIC 2nd Series of 2024, all trainees had the opportunity to learn the main training topic “MSME’s Best Practices in Obtaining and Effectively Managing Formal Financing” by Mrs. Chau Lon Molika, CEO and Founder of Cambodian Standard Development & Supply Co., Ltd., and BoD in charge of Commission Access to Finance of YEAC. As also a business owner, Mrs. Molika shared the strategy in financial management and her experience in obtaining formal financing through grants, loans, and other financing options, and also encouraged the trainees to share their experiences as practical inputs to other trainees to get maximum and comprehensively advantages from the formal financing. Trainees also shared their personal experiences through a group discussion on effective financial management.

In addition, trainees also learned about CGCC’s Credit Guarantee Mechanism to Support the Access to Formal Financing of MSMEs especially in the agriculture sector, which is one of the priority sectors of the Royal Government and a core sector of national economic development, through sharing from Ms. Chum Selarath, Manager of Business Development (Bond Guarantee) of CGCC.

In line with the CGCC Credit Guarantee Mechanism, Ms. Mak Davy, Deputy Chief of Medium Business Lending Officer of ABA Bank, also shared the bank’s support for MSMEs in access to the guaranteed loans and the bank loan approval procedures to increase the awareness of MSMEs in obtaining formal financing from the bank and to increase their financial literacy.

Capacity-building is one of the priorities of CGCC in the mission of improving financial inclusion and developing SMEs in Cambodia. EPIC is the flagship entrepreneurs’ capacity-building program of CGCC that will provide training to MSMEs on relevant and practical topics for entrepreneurs in collaboration with related stakeholders/Participating Financial Institutions.

 

CGCC Pays a Courtesy Visit and Discuss with the Management Team of the Ministry of Industry, Science, Technology and Innovation

Posted on by Sorn Chhorvyvatey

On 18 July 2024, at the Ministry of Industry, Science, Technology and Innovation (MISTI), Mr. Wong Keet Loong, CEO of CGCC, led the CGCC team to pay a courtesy visit and discuss with the management team of the Ministry of Industry, Science, Technology and Innovation.

Mr. Wong expressed his warm welcome to the management team of the (MISTI) and shared the progress of CGCC in providing credit guarantees as well as the strategic plan of CGCC, which needs the cooperation and support from MISTI.

This meeting will provide an opportunity for CGCC to explore the feasibility of leveraging the credit guarantee mechanism to support the development of small and medium enterprises under the support of the MISTI.