Posted on by Sorn Chhorvyvatey
Tag: Credit Guarantee Corporation of Cambodia
Job Vacancy with CGCC – Senior Manager/Manager of Business Development (Bond Guarantee)
Job Overview
The Senior Manager/Manager of Bond Guarantee Business of the Credit Guarantee Corporation of Cambodia (CGCC) will report to the Head of the Strategy and Business Development Department on CGCC’s bond guarantee matters.
Job Description
- Assist the Head of the Strategy and Business Development Department in strategic planning to develop and execute CGCC’s bond guarantees.
- Originate and structure new guaranteed bond transactions.
- Process new CGCC-guaranteed bond transactions, including preparing documentation, conducting due diligence by collaborating with relevant CGCC departments, and seeking approval from CGCC’s management.
- Oversee performance and monitoring of guaranteed bond and recommend any remedial actions.
- Support and assist the Head of SBD on any bond guarantee-related matters involving ministries, regulators, and other public institutions.
- Develop close working relationships with securities companies, potential issuers, and bond investors to expand CGCC’s bond guarantee opportunities.
- Develop close working relationships with CGCC’s international partners regarding bond guarantees.
- Perform any other roles and responsibilities as assigned by management periodically.
Qualification
- A minimum of a master’s degree in economics, finance, business, or a related field.
- At least five years of working experience in the banking or securities sectors, particularly in bond underwriting, credit operation, or risk management.
- Strong analytical and strategic thinking skills.
- Proven coordination, communication, interpersonal and diplomatic skills.
- Ability to work effectively as a team with a sense of responsibility, flexibility, adaptability, and ability to learn and work under pressure.
- Ability to prioritize tasks effectively, maintain timelines, and manage/plan workloads effectively.
- Strong verbal and written communication skills in Khmer and English.
- Competence in Microsoft Office Software.
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.
CGCC Attended the Regional Workshop on Strengthening Regional Partnerships for Climate Transition.
On the 26th & 27th March 2024 in Bangkok, Thailand, CGCC Delegation, led by Mr. Wong Keet Loong, CEO of CGCC attended the Regional Workshop on Strengthening Regional Partnerships for Climate Transition.
Mr. Wong Keet Loong was also invited to share on CGCC’s Sustainable Green Financing Facility, a blended financing model developed together with support from UNDP to increase our guarantee capacity for the Green sector.
CGCC Provides $174 million Credit Guarantees to 2,070 Businesses as of February
The Credit Guarantee Corporation of Cambodia (CGCC) has provided credit guarantees of $174 million as of February this year to 2,070 businesses as their working capital for expansion.
In a factsheet issued on Monday, CGCC said as of February 29, 2024, the outstanding guaranteed loan was $120 million while the outstanding guaranteed amount was $86.9 million.
There are 1,918 micro, small and medium enterprises (MSMEs) and 152 large businesses in Cambodia, the report said, adding that 881 of businesses were women-owned.
The CGCC scheme involves 27 participating financial institutions (PFIs) to extend credit as working capital investment and business expansion to SMEs.
Established in November 2020 with a state budget of $200 million, the CGCC is the preferred credit guarantee institution in Cambodia set up to improve financial inclusion and develop the growth of SMEs.
Smooth loan distribution has boosted entrepreneurship and financial inclusion, said Mey Vann, Secretary of State at the Ministry of Economy and Finance.
“The CGCC has played a key role in serving the needs of SMEs in Cambodia, which are struggling in the wake of the Covid-19 pandemic and the inflation crisis, and need credits from banks for their businesses,” he said.AKP
Credit to: Khmer Times, Published on 19 March 2024
CGCC Celebrating International Women’s Day
On 06 March 2024, CGCC management and staff celebrated International Women’s Day to appreciate all CGCC female staff who have played vital roles in advancing CGCC’s development in various operational areas.
To express this appreciation, CGCC’s management presented souvenirs and organized a lunch gathering with all CGCC’s staff.
Out of 51 staff, CGCC has 21 women (41%) who work in different departments and positions.
Understanding CGCC’s Bond Guarantee
In April 2022, the Ministry of Economy and Finance provided a policy direction to CGCC to diversify our guarantee service to bond guarantees. CGCC was then accredited by the Securities and Exchange Regulator of Cambodia (SERC) in August 2023 as a local bond guarantor and completed its rating procedure, and was rated “khAAA” with a Stable Outlook, the highest rating on a local scale by the Rating Agency of Cambodia. With all these set, CGCC will embark on a new journey to provide guarantees on bond issuance to support Cambodia’s capital market and the small and medium enterprises (SMEs) looking to enter the bond market for their sources of funding.
What is a bond?
A bond is a debt instrument, one of the alternatives to a bank loan. The bond issuer is a borrower, and the bond investor is a lender. Bond investors buy bonds from the issuer, who promises to pay interest (coupons) and bond principal during the bond maturity. Compared to a bank loan, a bond gives more flexibility in terms of structure, size, maturity, and interest payment. While just about any SME and individual can raise funds with bank loans as long as they can prove their repayment capacity, raising funds with bonds requires the issuer to be a more well-established and matured SME that can demonstrate good governance and business operation, reliable financial records, concrete future business plan and so on. In short, compared to bank loans, the requirements to issue bonds are stricter and more extensive. The table below gives a brief general comparison between a bank loan and a bond.
Indeed, issuing bonds is a common way for Governments and businesses to raise capital in many developed countries to finance their projects. It is not yet so much so in Cambodia. The bond market in Cambodia is still in the developing stage, facing challenges such as low liquidity, high-interest rates, and a low investor base. However, we have seen positive breakthroughs in recent years, especially in the issuance of government bonds, guaranteed bonds, and sustainable bonds. Currently, there are 9 listed corporate bond on the Cambodia Securities Exchange (CSX) raising funds between 1.5 to 30 million USD equivalent per issuance.
Read more: Understanding CGCC’s Bond Guarantee
Meet the Business Owner Who Received a Loan Guaranteed by CGCC
Solar Green Energy (SOGE), established in 2008, is a company providing green energy solutions using solar energy to irrigate the crops of Cambodian farmers. Shortly after the establishment, customers began to recognize SOGE and trust our services. I saw the opportunity to expand our business. We have the technology but lack human resources and capital.
I consulted with some banks and microfinance institutions to get additional capital. Because I didn’t have enough collateral for the loans, J Trust Royal Bank introduced me CGCC’s credit guarantee service which can guarantee my loan so that the bank can lend me without requiring my collateral. With the credit guarantee, I could get additional capital to build new pumping stations.
SOGE used the loans guaranteed by CGCC to expand the construction of pumping stations in some provinces such as Pursat, Kampong Cham, Kampong Chhnang and Kampong Thom. The stations can irrigate about 1,600 hectares and benefit about 1,000 families.
I think that CGCC’s credit guarantees can really support my business as well as other potential SMEs that lack collateral to get necessary capital from banks or microfinance institutions for their business expansion.
Read more: Meet the Business Owner Who Received a Loan Guaranteed by CGCC
CGCC Provides $170M Credit Guarantees to nearly 2,000 Businesses
The Credit Guarantee Corporation of Cambodia (CGCC) has provided credit guarantees of $170 million as of January this year to 1,977 businesses as their working capital for expansion.
In a factsheet issued on Feb. 20, CGCC said as of January 2024, the outstanding guaranteed loan was $119 million while the outstanding guaranteed amount was $85.8 million.
There are 1,854 micro, small and medium enterprises (MSMEs) and 154 large businesses in Cambodia, the report said, adding that 833 of businesses were women-owned.
The CGCC scheme involves 27 participating financial institutions (PFIs) to extend credit as working capital investment and business expansion to SMEs.
Established in November 2020 with a state budget of $200 million, the CGCC is the preferred credit guarantee institution in Cambodia set up to improve financial inclusion and develop the growth of SMEs.
Smooth loan distribution has boosted entrepreneurship and financial inclusion, said Mey Vann, Secretary of State at the Ministry of Economy and Finance.
“The CGCC has played a key role in serving the needs of SMEs in Cambodia, which are struggling in the wake of the Covid-19 pandemic and the inflation crisis, and need credits from banks for their businesses,” Mey Vann said.AKP
Credit to: Khmer Times, Published on 21 February 2024