CGCC

Menu
Menu
Menu

Tag: business recovery guarantee scheme

Capacity Building Session for CGCC by CGIF on Developing the Cambodian Bond Market

Posted on by Sorn Chhorvyvatey

On 03 February 2026, through the strategic collaboration commitment, Credit Guarantee and Investment Facility (CGIF) conducted its first capacity building session and experience sharing for approximately 20 CGCC’s management and staff at CGCC’s Office.

Through this session, CGIF provided an in-depth overview of CGIF’s guarantee process and corporate credit risk management frameworks, while also aligning on CGIF’s country strategy for Cambodia to support sustainable, long-term growth.

This knowledge-sharing initiative is a part of the strategic collaboration under the Memorandum of Understanding between CGCC and CGIF, and underscores both institutions’ shared commitment to strengthening  capital market development in the region.

CGCC Participates in Cambodia National Conference 2025

Posted on by Sorn Chhorvyvatey

On 22 August 2025 at SUN & MOON Hotel, Mr. No Lida, CEO of CGCC, and colleagues, participated as a key speaker at the Cambodia National Conference 2025 of CorporateConnections Cambodia, which was attended by leaders, members, national and international speakers, and distinguished guests. The conference was a valuable opportunity to network with local and international business owners and learn more about their own business leadership experiences.

Through this conference, Mr. No Lida also shared CGCC’s support for SMEs through our services and products, including loan guarantee, bond guarantee, and the Entrepreneurship Program Initiative of CGCC (EPIC), to support the development of SMEs in Cambodia.

CorporateConnections is a global business networking community established with the goal of connecting leaders around the world and empowering them to create meaningful business opportunities and positive changes in their organizations, communities, and lives. Currently, CorporateConnections is present in 33 countries and has a total of 1,700 members. The goal of CorporateConnections Cambodia is to bring Cambodia to the world and bring the world to Cambodia.

 

Entrepreneurship Program Initiative of CGCC (EPIC 4)

Posted on by Sorn Chhorvyvatey

On 25 April 2025, in Kampong Cham province, Credit Guarantee Corporation of Cambodia (CGCC) and the Department of Industry, Science, Technology & Innovation Kampong Cham province, co-organized the EPIC 4 on “Bankable Business Plan for SMEs”, presided over by Mr. Poun Run, Chief of the Department of Industry, Science, Technology & Innovation Kampong Cham province, and with honorable presence of Mr. No Lida, CEO of CGCC, participated by trainees who are Micro, Small, and Medium (MSMEs), especially Private Water Operators in Kampong Cham and the various provinces, in total 75 participants, in which 28 are females.

Through the EPIC 4, trainees learnt about the training topic on “Bankable Business Plan for SMEs” shared by Ms. Chau Lonmolika,, who is the CEO and Founder of Cambodian Standard Development & Supply Co., Ltd., and BoD in charge of Commission Access to Finance of YEAC. After learning about the training topic, all participants also shared their experiences with each other through a group discussion forum on creating a one-page business plan (Business Plan Model Lean Canvas), which was an opportunity for participants to practice and receive constructive feedback from the trainers and guest speakers.

Moreover, trainees also learnt about “CGCC’s Credit Guarantee Mechanism to Support the Access to Formal Financing of MSMEs” through the presentation by Mr. Yun Phan, Director of Strategy and Business Development of CGCC. Mr. Yun Phan also shared the Utilities Development Guarantee Scheme (UDGS) f with private water operators, which will be officially launched very soon to support them.

In line with the CGCC credit guarantee mechanism, Mr. Taing Hokleng, Head of Retail SME of Maybank Cambodia, also discussed “Bank Loans Assessment and Guaranteed Loans/Financial Solutions for SMEs” and the financial solutions that Maybank could provide with private water operators.

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.

Understanding Bond Guarantee

Posted on by Sorn Chhorvyvatey

What are bonds? What if they are guaranteed?

Bonds are debt instruments offering interest coupons with maturity date of one year or more. They are common means of financing which are categorized as Plain Bond, Secured Bond, and Guaranteed Bond. Bonds are designed to be more easily tradeable and are commonly issued by larger companies, governments, and special purpose issuers. They are also a core holding for many investors, such as insurance companies, trustees, and central banks.

While bonds are structured with various types of coupons, in Cambodia we observe that fixed-coupon and floating-rate bonds are available in the market. Fixed-coupon bonds offer periodic uniform payments usually at monthly, quarterly, semi-annual, or annual intervals. Floating-rate bonds, on the other hand, combine a market reference rate (MRR) and an issuer-specific spread referred to as the credit spread. Bonds can be issued in many currencies. Bonds that pay both interest and principal in the same currency are called single currency bonds; bonds that pay interest in one currency but principal in another currency are called dual currency bonds. In Cambodia, bonds shall be denominated in Khmer riel but are allowed to be settled in US dollar.

Guaranteed bonds have interest and principal payments promised to be paid by a third party should the issuer default. The third party, the Guarantor, could be a government, private company, insurance company, or the parent company of the issuer. The guarantor grants bond investors with guarantee for the issuer’s credit risk being the risk of economic loss resulting from issuer’s failure to meet their timely promised interest and/or principal payment obligations over the life of the bond. This compensation could boost investors’ confidence and cause the bonds to have a lower coupon rate, but the issuer is charged for guarantee, usually at a rate based on their own risk profile. With guarantee, the bond issued would receive a credit rating as high as the guarantor’s credit rating. Thus, a bond guarantee facility offers a safer investment option for investors and a more affordable borrowing to issuers.

Nevertheless, a bond guarantee would require covenants imposed on and security packages required from issuers depending on the assessment. The guarantor assesses issuer mainly on their financial health and performance, corporate governance, and future business plan, etc. The guarantor also conducts due diligence by performing onsite visits to examine in detail the company’s financial, operational, legal, tax and other areas. Upon the completion of the process, the guarantor would be able to conclude whether the guarantee facility could be offered and with what kind of covenants and security packages. Covenants are the legal terms of debt agreements that an issuer must comply with and usually involve financial restrictions which could be a limit on leverage ratios, minimum debt service coverage ratio, and prudential ratios such as liquidity ratio, solvency ratio, NPL (non-performing loan) ratio and other ratios required by the central bank in case issuers are banking and financial institution. The security packages should be the asset quality and value supporting the issuer’s indebtedness which may include bank deposits, property, personal guarantee, sinking funds, and others. Moreover, a bond guarantee also requires a set of legal documents where the terms and conditions of the guarantee and the recourse are set out.

Whilst the bond guarantor promises to assume responsibility for a debt on behalf of the issuer, they can also seek another guarantor to split risk. This re-guarantee allows both guarantors to share part of the exposure based on their risk appetite. In Cambodia, Credit Guarantee Corporation of Cambodia (CGCC) is the first and only entity accredited by the Securities and Exchange Regulator of Cambodia (SERC) as the bond guarantor. CGCC’s bond guarantee facility includes both sole and re-guarantee. CGCC unconditionally and irrevocably guarantees 100 percent of the bond principal and interest amount on sole guarantee. In mid-2024, CGCC took an important step to foster our bond guarantee mission by initiating a strategic partnership with the Private Infrastructure and Development Group (PIDG) and their subsidiary, GuarantCo Ltd. The three institutions agreed to enter into re-guarantee transactions of bonds in Cambodia to support the local bond market development.

Since CGCC’s guarantee features extend to a minimum issue amount of only 8 billion riels (about 2 million US dollar), enterprises and corporations in need of capital could consider issuing bonds as an alternative to a bank loan. Enterprises and corporations, in consultation with their financial advisor or the underwriter, would be able to structure their bond tenor, coupon rate, repayment of principal, and other terms as per their preference. Meanwhile, CGCC does not restrict our bond guarantee to any specific sector, so application from potential issuers of any sector is openly welcomed for assessment.

Read and Download in PDF: https://www.cgcc.com.kh/wp-content/uploads/2025/06/Understanding-Bond-Guarantee.pdf

 

CMA and CGCC Partner to Enhance Financial Inclusion and Promote Green Financing in Cambodia

Posted on by Sorn Chhorvyvatey

Cambodia Investment Review

The Cambodia Microfinance Association (CMA) and the Credit Guarantee Corporation of Cambodia (CGCC) have signed a Memorandum of Understanding (MoU) to advance financial inclusion and sustainability across Cambodia. The partnership, formalized during the CGCC Annual Seminar on “Innovation of Credit Guarantee to Promote Green Financing,” presided over by H.E. Ros Seilava, Secretary of State of the Ministry of Economy and Finance and Chairman of CGCC, aims to drive financial literacy, promote digital finance, and foster green financing initiatives.

Read More: Cambodia Microfinance Association Catalyzes Global Efforts in Sustainable, Inclusive Finance at 2024 AGM

Strategic Focus on Capacity Building and Green Finance

Under the three-year agreement, CMA and CGCC will collaborate on a range of initiatives to strengthen the capacity of micro, small, and medium enterprises (MSMEs), banking and financial institutions (BFIs), and stakeholders. Key areas of cooperation include:

  • Capacity Development: Joint training programs and workshops for BFIs, MSMEs, and stakeholders to enhance skills and knowledge.
  • Financial Literacy: Increasing awareness and accessibility of financial services among Cambodians.
  • Digital Financial Services: Promoting innovative solutions to improve financial inclusion.
  • Green Sector Initiatives: Encouraging sustainable practices in the financial sector to support environmental objectives.

“This partnership marks a significant step toward advancing financial inclusion in Cambodia. By combining our expertise and resources, we can create a more robust financial ecosystem that supports the growth of MSMEs and contributes to the country’s sustainable development,” said Oknha Hout Ieng Tong, CMA representative.

Enhancing Access to Underserved Businesses

The partnership will leverage CGCC’s credit guarantees to expand access to financing for underserved businesses, supporting their growth and integration into Cambodia’s financial system.

“We are excited to collaborate with CMA to enhance financial literacy and provide better access to financial services. This MoU is a testament to our shared commitment to fostering economic growth and sustainability in Cambodia,” said Mr. No Lida, Chief Executive Officer of CGCC.

By focusing on financial literacy and green financing, the partnership aligns with Cambodia’s broader economic development goals. Both organizations have committed to ensuring the confidentiality of shared information and the effective execution of initiatives outlined in the MoU.

Credit to: Cambodia Investment Review, Published on 24 January 2025

SERC and CGCC Sign MoU to Promote Guaranteed Bonds in Cambodia

Posted on by Sorn Chhorvyvatey

Cambodia

The Securities and Exchange Regulator of Cambodia (SERC) and the Credit Guarantee Corporation of Cambodia (CGCC) have signed an MoU. The agreement, aimed at promoting the development and issuance of guaranteed bonds in the country, was signed at the Non-Bank Financial Services Authority (FSA) Building under the auspices of H.E. Dr. Aun Pornmoniroth, Deputy Prime Minister, Minister of Economy and Finance, and Chairman of the FSA.

The signing ceremony was attended by senior officials, including H.E. Sou Socheat, Delegate of the Royal Government in Charge as Director General of SERC, and Mr. Wong Keet Loong, Chief Executive Officer of CGCC. The event was presided over by H.E. Ros Seilava, Secretary of State of the Ministry of Economy and Finance, Chairman of CGCC, and Vice Chairman of the Board of the FSA.

Support The Growth Of The Securities Sector In Cambodia

This MoU marks a collaborative effort to support the growth of the securities sector in Cambodia, particularly through the issuance of guaranteed bonds. These bonds, including green bonds, social bonds, sustainability-linked bonds, and sustainability bonds, will be guaranteed by local institutions to enhance confidence among investors. The guarantee mechanism is designed to mitigate the risks associated with bond issuance, thereby encouraging more companies and financial institutions to raise capital through this avenue.

Read More: SERC and ACLEDA Bank Strengthen Commitment to Developing Capital Market Talent

H.E. Sou Socheat emphasized the significance of the agreement, stating, “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 highlighted CGCC’s role in this initiative, noting, “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.”

CGCC To Be The Leading Bond Guarantee Institution In Cambodia

H.E. Ros Seilava added that this collaboration would have a far-reaching impact on the development of the bond market in Cambodia, stating, “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.”

Read More: Leader Talks with H.E. Sou Socheat on SERC’s Vision for Cambodia’s Securities Markets from 2024-2028

The MoU signing was followed by a workshop titled “Benefits and Opportunities of Issuing Guaranteed Bonds in Cambodia.” The workshop aimed to raise awareness among small and medium enterprises (SMEs) and related institutions about the opportunities and benefits of issuing guaranteed bonds. It also provided insights into the requirements for obtaining guarantees for bonds, facilitating better understanding and participation in the bond market.

The event attracted a broad range of participants, including senior representatives from the General Secretariat of the FSA, regulators under the FSA, the Cambodia Securities Exchange (CSX), the Cambodia Association of Securities Firms, the Cambodia Chamber of Commerce, the Young Entrepreneurs Association of Cambodia, the Association of Banks in Cambodia, the Rating Agency of Cambodia Plc., and various listed companies. A total of 100 participants attended the event, which featured expert speakers from SERC, CGCC, Telcotech LTD., Royal Group Securities Plc., and Prudential (Cambodia) Life Assurance Plc.

 

Credit to: Cambodia Investment Review, Published on 02 September 2024

 

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.

 

Investment Support for Post-Harvest Fishery Sector

Posted on by Sorn Chhorvyvatey

PHNOM PENH – An Investment Support Facility (ISF) scheme was launched on May 29 to support fisheries operators with technology, financing, and value chains after the fishing season. 

The aim is to respond to challenges which include inadequate fish-processing technologies, limited value addition, and food safety concerns that impact consumer’s trust and global competitiveness, the UN Industrial Development Organization (UNIDO) says.

It is designed from the CAPFISH-Capture project that is built on the success of its current Value Chain Investment Support, also known as VCIS. It targets over 100 eligible enterprises in the fisheries value chain in addition to the 50 enterprises already being supported by VCIS.

Mey Vann, secretary of state of the Ministry of Economy and Finance and a council member of the Credit Guarantee Corporation of Cambodia (CGCC), said ISF is important in enhancing the fishery sector, as eligible enterprises will be able to access technical support, capacity building and financial assistance.

These include a grant and guaranteed loans with favorable conditions.

The scheme is a blended financing initiative co-founded by the European Union, the Fisheries Administration, UNIDO and CGCC.

It aims to assist fisheries enterprises after the fishery season, input suppliers, and value chain partners, as well as increase productivity with high quality and safety.

Dith Tina, Minister of Agriculture, Forestry and Fisheries, said ISF will contribute to fishers at all levels in processing products in the post-fisheries season, because high quality and safety are the requirements for exports that will help expand productivity sustainably and responsibly.

Meanwhile, Dejene Tezera, UNIDO’s director of agri-business and infrastructure development, believes that such an initiative will “elevate the value and quantity of safe, high-quality fishery products, enabling fish processors to thrive in global markets.”

Investments in innovation and capacity building pave the way for a future where the sector “stand tall on the world stage, delivering excellence, reliability, and prosperity to local communities and beyond,” he said.

Igor Driesmans, EU Ambassador to Cambodia, believes that the ISF, aligned with the global market requirements, will boost the sector’s competitiveness and sustainability and reinforce economic expansion, public health safeguards and job creation.

Credit to: Cambodianess, Publish on 30 May 2024

Cambodia Offers Finance Scheme to Help Fishery Growth after Harvest

Posted on by Sorn Chhorvyvatey

PHNOM PENH, May 29 (Xinhua) — Cambodia’s Fisheries Administration (FiA) on Wednesday launched an Investment Support Facility (ISF) scheme, aiming to catalyze growth in the country’s post-harvest fisheries.

The ISF scheme is a blended financing initiative in cooperation with the United Nations Industrial Development Organization (UNIDO) and the Credit Guarantee Corporation of Cambodia (CGCC) and co-funded by the European Union (EU), said a news release after the launching event.

With its rich fisheries resources, Cambodia holds great promise for excelling in the global fish and fishery products market. However, post-harvest fisheries face challenges such as inadequate fish-processing technologies, limited value addition, and food safety concerns impacting consumer trust and the sector’s competitiveness on a global scale, the news release said.

The ISF scheme was designed to support post-harvest fisheries enterprises and their input suppliers in overcoming these challenges, enhancing productivity and product safety and quality.

“This scheme blends co-financing from the enterprises’ own resources, guaranteed business loans distributed by the local financial institutions, and grant support from the project,” the news release said.

“This new scheme targets over 100 eligible enterprises in the fisheries value chain in addition to the 50 enterprises already being supported by the project’s Value Chain Investment Support,” it added.

Cambodian Minister of Agriculture, Forestry and Fisheries Dith Tina reaffirmed the commitment to further advancing Cambodia’s fisheries sector to higher levels.

“The ISF is a good initiative to support the collaboration between the Fisheries Administration of the Ministry of Agriculture, Forestry and Fisheries, UNIDO, and the private sector to promote growth in the post-harvest fisheries sector in Cambodia,” he said.

Tina is optimistic that the scheme will promote the processing of post-harvest fishery products to higher standard and quality, as well as provide economic benefits to fishermen and processing enterprises.

Credit to: Xinhua, Published on 29 May 2024