CGCC

CGCC kick off the 1st Series of Entrepreneurship Program Initiative of CGCC (EPIC) to 20 Entrepreneurs

On 25th May 2024, at the Business Development Center, Credit Guarantee Corporation of Cambodia (CGCC) and ACLEDA co-organized the Entrepreneurship Program Initiative of CGCC (EPIC) 1st series of 2024 on “Tips in Preparing Business Plan and Strategy to Obtain Formal Financing” with around 20 Selected Micro, Small, and Medium (MESME) Entrepreneurs from Phnom Penh and the 5 Provinces.

EPIC is a long-term capacity-building program for MSMEs in Cambodia that launched in 2024 and will be implemented onward, focusing on financial literacy, entrepreneurship, credit guarantee, and effective responsible use of guaranteed loans.

Through the EPIC 1st Series of 2024, all trainees had the opportunity to learn the main topic “Tips in Preparing Business Plan and Strategy to Obtain Formal Financing”, by learning the importance of business plans, especially for applying for loans to any banks or microfinance institution and getting a practical opportunity to prepare a business plan in the classroom. In addition, participants also received information on the CGCC Credit Guarantee Mechanism to support access to financing for MSMEs and Guaranteed Products and the loan approval procedures of ACLEDA Bank.

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 that are willing to provide long-term capacity development to small and medium enterprises.

CGCC Participating in the 47th Association of Development Financing Institutions in Asia and the Pacific (ADFIAP)

Mr. Wong Keet Loong, CEO of CGCC, led the CGCC’s team to participate in the 47th ADFIAP Annual Meeting from 15 to 17 May 2024, at Sofitel Phnom Penh, hosted by the Agricultural and Rural Development Bank (ARDB) of Cambodia.

The 47th ADFIAP Annual Meetings is attended by more than 400 participants from more than 40 countries who are ADFIAP members, representatives from developing partners, representatives from the private sector, and other relevant stakeholders to share experiences from the countries in the Asia Pacific under the topic “DFIs’ Role in Sustainable Finance Ecosystem: Cultivating a climate-smart and sustainable future”. CGCC also submitted an application to be a member of ADFIAP through this annual meeting as well.

 

Signing Ceremony on MOU Between CGCC and Cambodia Rice Federation and Rice Export Guarantee Scheme Agreement Between CGCC and Participating Financial Institutions

On 10 May 2024, at the Business Development Center, Credit Guarantee Corporation of Cambodia (CGCC) organized a Signing Ceremony on the “Memorandum of Understanding (MOU) between CGCC and Cambodia Rice Federation (CRF) and the “Portfolio Guarantee Agreement on Rice Export Guarantee Scheme” between CGCC and Participating Financial Institutions ” presided over by H.E. Ros Seilava, Secretary of State of the Ministry of Economy and Finance (MEF), with the presence of the Board of Directors of the CGCC, the management and members of CRF, the management and staff of the PFIs and CGCC, a total of more than 70 people.

The ceremony was held to seal the official cooperation between CGCC, CRF, and PFIs on the Rice Export Guarantee Scheme (REGS), which aims to increase the productivity and competitiveness of Cambodia’s rice industry and boost rice exports in line with the Royal Government of Cambodia’s policy on agriculture.

CGCC, CRF & 7 FIs indicating their commitment towards exporting 1 mil tons of rice

After receiving high approval from His Excellency Deputy Prime Minister, Minister of Economy and Finance, CGCC launched the USD 30 Million REGS as a Portfolio Guarantee Scheme (PGS), having 7 financial institutions participating in this scheme, including AMK Microfinance Institution, Canadia Bank, Foreign Trade Bank of Cambodia (FTB), Maybank (Cambodia), Prince Bank, Sathapana Bank, and Wing Bank. (Cambodia).

H.E. Ros Seilava, Secretary of State of MEF mentioned that “The launch of the USD 30 million REGS project is a reflection of the Royal Government’s strong commitment to support Cambodian rice production and rice exports through the public credit guarantee scheme, of which CGCC is the operator, by providing guarantee coverage of 80% on the maximum loan of up to USD 3 million. The REGS will support the financing need of rice exporters and rice millers to purchase paddy from farmers to produce rice for exports in line with the Royal Government of Cambodia’s policy to increase rice production and exports.”

Oknha Chan Sokheang, President of CRF said “Today’s signing ceremony is a further symbol of the readiness process to further enhance the rice sector through private-to-private and private-sector cooperation with the Government. The first phase of the rice credit guarantee package will now help millers expand their scope to stockpile rice for milling, processing, exporting, and increasing local value-added products derived from its by-products milling all rice to other sectors such as aquaculture, livestock farming, etc. The guarantee package is also an additional catalyst for the implementation of the rice production policy and export of 1 million tons per year set by the Royal Government, and we believe that this plan will be achieved in the up-coming 2025.”

Mr. Wong Keet Loong, CEO of CGCC said “CGCC is launching a new guarantee scheme, the Rice Export Guarantee Scheme (REGS) amounting to USD30mil to support working capital loans for rice millers to produce rice for exports.  Seven Financial Institutions have committed to provide the guaranteed loans to enable the rice millers to have more capacity to export rice.  The scheme comes with special features eg. lower guarantee fees, higher guarantee cover and loan interest rate not exceeding 11% pa. We are supporting the aspirations of the Royal Government of Cambodia to export 1mil ton of rice by 2025.  This is our first tranche for the scheme and will request to increase the scheme size if there are higher demands for the guarantees.”

CGCC launched REGS to accommodate financing needs and address the challenges of rice exporters and millers facing a lack of collateral to pledge loans to financial institutions, especially during the harvest season. Rice exporters and millers who are active members of CRF and who need financing for working capital and business expansion, especially for the purchase of processed paddy rice to export rice, can contact CRF to obtain facilitation of access to this financing.

CGCC is a state-owned enterprise under the financial and technical guidance of the Ministry of Economy and Finance with a main mission to provide credit guarantees to improve financial inclusion and support the development of small and medium enterprises.

Meeting between CGCC, Manulife and RHB Securities to explore investment opportunities in CGCC’s guaranteed bonds.

On 6th May, 2024, at CGCC Office, Mr. Wong Keet Loong, CEO of CGCC and Management and team, welcomed the management and team of Manulife and RHB Securities to discuss investment opportunities in CGCC’s guaranteed bonds.

The meeting also discussed the exchange of views between the three institutions on the study of cooperation to support the issuance of CGCC’s guaranteed bonds to support the implementation of the bond issuance of local companies as well as to support the development of the securities sector in Cambodia.

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

On 26th April 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 Kampot province in collaboration with Kampot-Kep Chamber of Commerce with around 70 participants from Management and staff of Participating Financial Institutions (PFIs) and business owners in Kampot provincee.

The workshop was presided over by Oknha Dr. Hak Sovannarith, President of Cambodia Chamber of Commerce, chapter based in Kampot-Kep, Mr. No Lida, Deputy CEO of CGCC, Mr. Tith Kamrong, Financial Literacy Expert and Founder of Rithipul Company, and the presentations by representatives from Acleda Bank and AMK MFI 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 Conducted Courtesy Visits and Met the Management Team of 3 Bussiness Associations

On April 24 and April 26, 2024, CGCC team led by Mr. No Lida, Deputy CEO of CGCC conducted  courtesy visits and met the management team of Kampot – Kep Chamber of Commerce, Federation of Association of Small and Medium Enterprise s in Cambodia (FASMEC) in Kampot and Young Entrepreneurs Association of Cambodia (YEAC) Chapter Kampot-Kep.

The dialogue between CGCC and the three business associations provided the opportunity for both CGCC and the three business associations to learn about the business situation in the provinces and the challenges of the business owners in obtaining loans for working capital and business expansion through credit guarantee mechanism.

CGCC visits PFIs provincial branches in Takeo, Kep & Kampot to Enhance Collaboration on the Credit Guarantee

From 22 to 24 April 2024, CGCC team led by Ms. Pin Manika, Manager of Marketing and Business Development 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:

– Takeo province:  Philip, Maybank, and Prince Bank.

– Kep province: ACLEDA Bank, ABA Bank, and Sathapana Bank

– Kampot Province: Sathapana Bank  and Canadia 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 1st Town Hall Meeting 2024 on “Milestones in Q1 2024 and Strategy Plan in Q2 2024”

On 11 April 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 1st quarter of 2024 as well as share the strategy and action plans of all respective departments of the 2nd 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 participating in UNDP Cambodia Investor Convening

On 08 April 2024, Mr. Wong Keet Loong, CEO of CGCC was invited to be a panelist at the “Investor Convening Event for the Growth Stage Impact Venture Program in Cambodia” to share CGCC’s initiative in enabling the financing environment for private sector development Cambodia in the panel discussion focusing on “Investment landscape in Cambodia Specifically in Climate Adaptation”.

Through this panel discussion, Mr. Wong shared the government’s support mechanism for the private sector in access to finance through CGCC credit guarantee for businesses, especially green sector businesses. He also highlighted the Sustainable Green Financing Facility of CGCC, which is a blended financing model developed with support from UNDP to increase CGCC’s guarantee capacity for the green sector.

This UNDP Cambodia Investor Convening event aims to raise public and private sector interest and awareness around climate-anchored market solutions and investments, and also serve as a platform to mobilize and channel private sector capital and blended financing towards climate change adaptation and to diversify sources of climate financing by capitalizing on existing market opportunities.

CGCC and Royal Group Securities Plc. (RGS) Signed a MoU to Strengthen Cooperation on Bond Guarantees to Support the Bond Market Development in Cambodia

On 5th April 2024, Credit Guarantee Corporation of Cambodia (CGCC) and Royal Group Securities Plc. (RGS) signed a Memorandum of Understanding to strengthen cooperation on bond guarantees to support the bond market development in Cambodia witnessed by H.E. Sou Socheat, Delegate of the Royal Government of Cambodia in charge as Director General of Securities and Exchange Regulator of Cambodia (SERC), and highly attended by H.E. Hong Sokhour, Delegate of the Royal Government of Cambodia in charge as Chief Executive Officer of Cambodia Securities Exchange (CSX).

CGCC officially became the First Cambodian Bond Guarantor on 31 January 2024 after getting approval from H.E. Deputy Prime Minister, Minister of Economy and Finance on the Policy Framework on Bond Guarantee, accredited by the SERC as the first local bond guarantor, and rated khAAA, the highest rating on a local scale, by the Rating Agency of Cambodia.

Mr. Wong Keet Loong, Chief Executive Officer of CGCC, said, “CGCC has been accredited by the SERC to be the bond guarantor for corporate bonds listed on the CSX.  This partnership with RGS will enable us to be part of the structuring of bonds between the Issuers and Investors.  The guarantee for corporate bonds enhances the credit rating of the bond issuance, which adds confidence to investors.  CGCC, as a state-owned enterprise under the Ministry of Economy and Finance (MEF), will support SERC’s aspirations to develop the capital market to enable large businesses to source for funding by issuing bonds. With the bond guarantee, we hope to attract both local and foreign institutional investors to invest in the guaranteed bonds.”

Mr. Seng Chan Thoeun, Chief Executive Officer of RGS, said, “I am pleased to announce our strategic partnership with CGCC, aimed at enhancing debt capital raising through bond guarantee in Cambodian capital market by the state-owned corporate bond guarantor. This collaboration represents a significant milestone in our commitment to foster growth and trust within the financial sector. By leveraging our expertise and resources as a well-established securities firm, RGS will collaborate and support CGCC in providing guarantee to our local businesses, enhanced assurance to investors, thereby increasing confidence in bond offerings. Our joint effort will also enable us to offer more favorable terms and conditions to issuers, facilitating access to capital and promoting greater participation in the market. Ultimately, we believe this partnership will play a pivotal role in stimulating economic growth and development by providing a robust environment for capital formation and investment.”

The partnership between CGCC and RGS will play a significant role in supporting Cambodia’s sustainable economic development by collaborating in knowledge and resource sharing between the two institutions to develop bond guarantees that will support bond issuers in raising funds in capital markets, attract investors to invest in corporate bonds, and increase the bond market’s liquidity.

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.

About RGS

Royal Group Securities Plc. (RGS) is a full-licensed securities firm under the supervision of Securities and Exchange Regulator of Cambodia. RGS offers a wide range of professional financial services including capital raising, M&A, capital restructuring, stock trading, international stock investment, equity valuation, co-investment and financing, and more. RGS is the sole financial advisor and underwriter of all bonds issued in 2023 and subsequently listed on Cambodia Securities Exchange. In the second half of 2023, the company raised over USD 100 million for local businesses through IPO, bonds, and loan.