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Tag: SME Development

CGCC Provides $271M Loan Guarantees to SMEs

Posted on by Sorn Chhorvyvatey

The Credit Guarantee Corporation of Cambodia (CGCC) has provided credit guarantees of $271 million for micro, small and medium-sized enterprises (MSMEs) as of February 2025 as their working capital for expansion.

“As of the end of February 2025, CGCC has approved 3,979 guaranteed accounts, amounting to $271.14 million,” CGCC said in a report issued last Thursday.

In February 2025, CGCC approved 547 guaranteed accounts, which is the highest number of guaranteed accounts approved in a month since CGCC started the credit guarantee services in 2021.

The outstanding guaranteed loan as of February was $156.69 million, while the outstanding guaranteed amount was $114.89 million, read the report.

There are 3,792 micro, small and medium enterprises (MSMEs) and 187 large businesses in Cambodia, the report said, adding that 1,834 of the businesses were women-owned.

No Lida, CEO of CGCC, said that credit guarantee mechanisms have helped in contributing to the potential MSMEs that need funds to expand their production chains.

“Small and medium-sized enterprises that have potential but lack collateral or a certain level of risk that banks and microfinance institutions cannot provide credit to, so the Cambodia government, through the CGCC, will step in to help guarantee the credit of small and medium-sized enterprises,” he said.

Through the Cambodian Credit Guarantee Corporation, which insures up to 80 percent of loans to small and medium-sized enterprises, the government expects that banks and microfinance institutions will be able to provide more loans according to the needs of small and medium-sized enterprises, he said.

The CGCC scheme involves participating financial institutions (PFIs) including state-run Agriculture and Rural Development Bank and SME Bank to extend credit as working capital investment and business expansion to SMEs.

Established in November 2020, the CGCC is the preferred credit guarantee institution in Cambodia set up to improve financial inclusion and develop the growth of SMEs. CGCC’s credit guarantee is instrumental in aiding MSMEs to obtain sufficient financing, enabling the enterprises to capitalize on investment opportunities, boost employment and increase income.

Credit to: Khmer Times, Published on 24 March 2025

 

Agreement Signing Ceremony on Post-Harvest Fisheries Guarantee Scheme Between CGCC and FTB Bank

Posted on by Sorn Chhorvyvatey

On 21 March 2025, Credit Guarantee Corporation of Cambodia (CGCC) and Foreign Trade Bank of Cambodia (FTB) co-organized an agreement signing ceremony on “Post-Harvest Fisheries Guarantee Scheme (PFGS)” with honourable attendance from Management and the team of CGCC, FTB, and representatives of United Nations Industrial Development Organization (UNIDO Cambodia), to announce the official expanded partnership in providing guaranteed loans by CGCC through FTB to post-harvest fishery businesses and relevant suppliers.

PFGS is developed as a scheme for the Value Chain Investment Support Facility (ISF), a joint project under CAPFISH-Capture: Post-harvest Fisheries Development Project, jointly implemented by the Fisheries Administration and the UNIDO Cambodia, co-funded by the European Union, and having CGCC as the fund manager. Post-harvest fisheries enterprises and relevant suppliers can apply for support from the ISF on Technical Assistance (TA) for upgrading business operations and improving food safety practices, ISF Grant funds to procure Eligible Equipment to introduce innovations and optimise the business operations, and business loans guaranteed by CGCC from Participating Financial Institutions (PFIs) of CGCC such as FTB that has entered in this agreement on PFGS with CGCC.

Mr. No Lida, Chief Executive Officer of CGCC, said, “CGCC is delighted to have FTB as a new Participating Financial Institution (PFI) in the Investment Support Facility (ISF) project. The participation of FTB will improve the efficient implementation of the ISF in response to the demand of post-harvest fishery enterprises for access to financing support and guaranteed loans necessary to increase the competitiveness, productivity, and standard of production of potential post-harvest fishery enterprises in Cambodia.

Mr. Dith Sochal, Chief Executive Officer of FTB Bank, said, “Our two institutions are committed to strengthening and expanding our collaboration with the shared goal of driving innovation, enhancing efficiency, and optimising business operations for enterprises in the post-harvest fisheries sector, domestic suppliers, and exporters to international markets. This agreement also reflects the strong partnership and active engagement between FTB and CGCC since 2021, with the expectation of successful and sustained comprehensive cooperation between the two institutions.”

Through this PFGS agreement, CGCC and FTB are committed to supporting post-harvest fishery enterprises and input suppliers in increasing productivity, improving food safety compliance and quality standards of fishery products, reaching new markets, including international markets, and improving businesses in a more efficient, sustainable, and inclusive way.

For post-harvest fisheries enterprises, apply for ISF now! Limited funding is available on a first-come, first-served basis.

For more information about the ISF and the application process, visit: https://www.cgcc.com.kh/en/post-harvest-fishery-guarantee-scheme/

Email: [email protected]

Credit to: Khmer Times, Published on 21 March 2025

Agreement Signing Ceremony on Post-Harvest Fisheries Guarantee Scheme Between CGCC and FTB Bank

Posted on by Sorn Chhorvyvatey

On 21 March 2025, Credit Guarantee Corporation of Cambodia (CGCC) and Foreign Trade Bank of Cambodia (FTB) co-organized an agreement signing ceremony on “Post-Harvest Fisheries Guarantee Scheme (PFGS)” with honorable attendance from Management and team of CGCC, FTB, and representatives of United Nations Industrial Development Organization (UNIDO Cambodia), to announce the official expanded partnership in providing guaranteed loans by CGCC through FTB to post-harvest fishery businesses and relevant suppliers.

PFGS is developed as a scheme for the Value Chain Investment Support Facility (ISF), a joint project under CAPFISH-Capture: Post-harvest Fisheries Development Project, jointly implemented by the Fisheries Administration and the UNIDO Cambodia, co-funded by the European Union, and having CGCC as the fund manager.  Post-harvest fisheries enterprises and relevant suppliers can apply for support from the ISF on Technical Assistance (TA) for upgrading business operations and improving food safety practices, ISF Grant funds to procure Eligible Equipment to introduce innovations and optimize the business operations, and business loans guaranteed by CGCC from Participating Financial Institutions (PFIs) of CGCC such as FTB that has entered in this agreement on PFGS with CGCC.

Mr. No Lida, Chief Executive Officer of CGCC, said, “CGCC is delighted to have FTB as a​ new Participating Financial Institution (PFI) in the Investment Support Facility (ISF) project. The participation of FTB will improve the efficient implementation of the ISF in response to the demand of the post-harvest fishery enterprises for access to financing support and guaranteed loans necessary to increase competitiveness, productivity, and standard of production of the potential post-harvest fishery enterprises in Cambodia.”

Mr. Dith Sochal, Chief Executive Officer of FTB Bank said “Our two institutions are committed to strengthening and expanding our collaboration with the shared goal of driving innovation, enhancing efficiency, and optimizing business operations for enterprises in the post-harvest fisheries sector, domestic suppliers, and exporters to international markets. This agreement also reflects the strong partnership and active engagement between FTB and CGCC since 2021, with the expectation of successful and sustained comprehensive cooperation between the two institutions.”

Through this PFGS agreement, CGCC and FTB are committed to supporting post-harvest fishery enterprises and input suppliers in increasing productivity, improving food safety compliance and quality standards of fishery products, reaching new markets, including international markets, and improving businesses in a more efficient, sustainable, and inclusive way.

For post-harvest fisheries enterprises, apply for ISF now! Limited funding is available on a first-come, first-served basis.

For more information about the ISF and the application process, visit: https://www.cgcc.com.kh/en/post-harvest-fishery-guarantee-scheme/

Email: [email protected]

 

About FTB: As the first commercial bank in Cambodia, a truly local bank trusted since 1979, FTB has played crucial roles in helping to promote and develop the local market and economy through relentlessly providing wide ranges of banking products and services to local customers. As of 2024, the total assets increased to US$2.28 Billion, total loan portfolio of US$ 1.34 Billion and total deposit of over US$ 1.93 Billion. FTB is committed to continually helping local customers to achieve further growth, prosperity and steadily forging ahead with the vision to be the preferred commercial bank in Cambodia.

 

About CGCC: CGCC is a state-owned enterprise established by the Sub-Decree of the Royal Government of Cambodia in September 2020 under the technical and financial guidance of the Ministry of Economy and Finance (MEF). CGCC’s main mission is to provide credit guarantees to improve financial inclusion and support the development of small and medium enterprises. As of the end of February 2025, CGCC approved 3,979 guaranteed accounts, amounting to 274.14 million USD equivalent.

 

 

CGCC, CAPFISH-Capture Expand Support for Fisheries Enterprises

Posted on by Sorn Chhorvyvatey

The Credit Guarantee Corporation of Cambodia (CGCC) and the EU-funded CAPFISH-Capture: Post-Harvest Fisheries Development project have reached a significant milestone in promoting financial inclusion and growth for local micro, small, and medium enterprises (MSMEs) in the post-harvest fisheries sector.

According to a press release on Wednesday, the two organizations officially signed support agreements for 11 fish processing enterprises under the Investment Support Facility (ISF).

The ISF, a key initiative of the CAPFISH-Capture project funded by the European Union (EU), is administered by CGCC in collaboration with the United Nations Industrial Development Organization (UNIDO) and the Fisheries Administration (FiA).

This innovative financing scheme amounts to approximately $2.5 million, consisting of $1 million in grant funding (40 percent of the total investment) from the project for equipment support, $1.25 million (50 percent) in loans from participating financial institutions (PFIs) guaranteed by CGCC, and $250,000 (10 percent) contributed by the beneficiaries.

Since its launch in late 2024, the ISF has supported an initial group of 11 fish processing enterprises, with more expected to benefit from the program.

So far, the project has provided around $320,000 in initial grant funding, leveraging an additional $340,000 in CGCC-guaranteed loans from PFIs such as ACLEDA Bank and Maybank Cambodia, along with $580,000 contributed by the enterprises themselves.

The ISF primarily supports post-harvest fisheries enterprises seeking to enhance their operations and expand their market reach both nationally and internationally. The program places a strong emphasis on empowering businesses led by women, youth, and persons with disabilities.

Through the ISF initiative, CGCC and the CAPFISH-Capture project are committed to helping eligible post-harvest fisheries enterprises meet food safety and market standards.

The program offers tailored support, including business development assistance, market linkages, food safety compliance, and adherence to environmental and social safeguards.

Credit to: Khmer Times, Published on 27 February 2025

 

Investment Support Facility (ISF): CGCC, Participating Financial Institutions & EU-funded CAPFISH-Capture Team Up to Boost Investments in the Fisheries Sector

Posted on by Sorn Chhorvyvatey

Phnom Penh, 26 February 2025 – On February 21, 2025, the Credit Guarantee Corporation of Cambodia (CGCC) and the EU-funded CAPFISH-Capture: Post-harvest Fisheries Development project celebrated a significant milestone in promoting financial inclusion and growth for local micro, small, and medium enterprises (MSMEs) in the post-harvest fisheries sector. They officially signed support agreements for 11 fish processing enterprises as part of the Investment Support Facility (ISF).

The ISF, a key initiative under the CAPFISH-Capture project funded by the European Union (EU), is administered by the CGCC in collaboration with the United Nations Industrial Development Organization (UNIDO) and the Fisheries Administration (FiA). This innovative financing scheme totals approximately US$2.5 million, comprising US$1 million in grant funds (40% of total investment) from the project as equipment support, US$1.25 million (50%) in loans from participating financial institutions (PFIs) guaranteed by the CGCC, and US$250,000 (10%) contributed by the beneficiaries themselves.

Since its inception in late 2024, the ISF has welcomed its first group of 11 fish processing enterprises, with many more in the pipeline for this groundbreaking support. The project has provided its initial grant funding of around US$320,000, leveraging an additional US$340,000 guaranteed loans from CGCC’s PFIs, such as ACLEDA Bank and Maybank Cambodia, along with US$580,000 from the enterprises themselves.

The ISF focuses primarily on supporting post-harvest fisheries enterprises eager to enhance their operations and expand their market reach, both nationally and internationally. There is a strong emphasis on empowering businesses led by women, youth, and persons with disabilities.

Through the ISF initiative, the CGCC and the CAPFISH-Capture project are committed to helping eligible post-harvest fisheries enterprises meet food safety and market standards. Tailored support includes assistance with business development, market linkages, food safety compliance, and environmental and social safeguards.

For post-harvest fisheries enterprises, APPLY NOW! Limited funding is available on a first-come, first-served basis.

For more information about the ISF and the application process, visit: https://www.cgcc.com.kh/en/post-harvest-fishery-guarantee-scheme/

Email: [email protected]

Photo credit: @UNIDO_CAPFISH-Capture_Sovannarith NUTH
Photo credit: @UNIDO_CAPFISH-Capture_Sovannarith NUTH
Photo credit: @UNIDO_CAPFISH-Capture_Sovannarith NUTH

Guarantco and CGCC Sign Framework Agreement and First Transaction Together To Accelerate Sustainable Infrastructure Investment In Cambodia

Posted on by Sorn Chhorvyvatey

Cambodia Investment Review

GuarantCo, part of the Private Infrastructure Development Group (PIDG), and the Credit Guarantee Corporation of Cambodia (CGCC) have signed a Framework Agreement as part of the PIDG Credit Enhancement Facility (CEF) initiative.

The initiative seeks to accelerate the development of domestic capital markets and enhance financial inclusion through developing onshore guarantee capability. The Framework Agreement encompasses counter- and co-guarantee support from GuarantCo and technical assistance from PIDG Technical Assistance to help boost CGCC’s capacity. The Framework Agreement is also aligned with the mandate and prioritisation from the Ministry of Economy and Finance, and the Securities and Exchange Regulator of Cambodia who are seeking to deepen the corporate and project bond market in Cambodia.

USD 7 Million Portfolio Guarantee To CGCC

The Framework was signed alongside the first transaction between GuarantCo and CGCC, wherein GuarantCo has provided a 10-year, USD 7 million portfolio guarantee to CGCC. Marking GuarantCo’s fourth investment in Cambodia, the portfolio guarantee will allow CGCC to mobilise further bank lending towards small and medium-sized enterprises (SMEs) in the country, with a focus on businesses supporting the green transition.

Read More: No Lida Appointed as CEO of Credit Guarantee Corporation of Cambodia

SME development is a high priority for Cambodia where a lack of access to formal banking services is common due to the nascency of green financing in the country.

The Framework Agreement follows a Memorandum of Understanding (MoU) signed in August 2024, which seeks to increase and upscale CGCC’s capacity through its involvement in a range of large-scale Corporate and Project finance deals. CGCC and GuarantCo will look to execute counter- and co-guarantees under the Framework, with a particular focus on catalysing sustainable infrastructure financing via the capital markets in Cambodia.

The accompanying PIDG TA grant programme will support CGCC to develop its technical capabilities in capital markets, allowing both organisations to scale their impact in Cambodia.

CGCC Is Testimony To The Market Acceleration

Denesh Srishanker, Group Head, Credit Enhancement Facilities at PIDG, said: “The signing of this Framework Agreement and completion of its first transaction less than five months after our MoU with CGCC is testimony to the market acceleration we want to achieve together. Establishing in-country credit enhancement facilities is key to support local market development and is therefore an integral part of PIDG’s 2030 Strategy to mobilise innovative infrastructure projects across Africa and Asia.”

Chinmay Naralkar, Deputy CEO at GuarantCo, said: “We are delighted to put into place this Framework Agreement with the Credit Guarantee Corporation of Cambodia and whilst cementing it with an inaugural transaction. The Framework will support CGCC’s growth in providing progressive sustainable infrastructure financing through local capital markets to support a green transition. Aligned with our strategic plans, we look forward to continuing to build our momentum in Cambodia to the benefit of the environment and local people and their livelihoods.”

No Lida, CEO of the Credit Guarantee Corporation of Cambodia, said: “We are pleased to demonstrate early progress in our collaboration with GuarantCo and PIDG with this Framework and our first international deal. This initiative aligns with CGCC’s strategy to enhance our bond guarantee capacity and support the development of SMEs in Cambodia. We seek to embed the international best practices represented by GuarantCo and PIDG as we build our capacity. This is a true cooperation in which we will learn from each other’s expertise while driving forward sustainable infrastructure for Cambodia.”

Credit to: Cambodia Investment Review, Published on 18 January 2025

 

GuarantCo, CGCC Sign FWA to Boost Financial Inclusion

Posted on by Sorn Chhorvyvatey

GuarantCo, part of the Private Infrastructure Development Group (PIDG), and the Credit Guarantee Corporation of Cambodia (CGCC) signed a Framework Agreement (FWA) to enhance domestic capital market financial inclusion through developing onshore guarantee capability.

This collaboration, part of the PIDG Credit Enhancement Facility (CEF) initiative, aims to develop onshore guarantee capabilities to foster financial inclusion and accelerate capital market growth, read a press release issued last Friday.

The agreement outlined a framework for counter- and co-guarantee support from GuarantCo and technical assistance from PIDG Technical Assistance to help boost CGCC’s capacity.

The FWA is also aligned with the mandate and prioritisation from the Ministry of Economy and Finance, and the Securities and Exchange Regulator of Cambodia who are seeking to deepen the corporate and project bond market in Cambodia.

The FWA was signed alongside the first transaction between GuarantCo and CGCC, wherein GuarantCo provided a 10-year, $7 million portfolio guarantee to CGCC.

Marking GuarantCo’s fourth investment in Cambodia, the portfolio guarantee will allow CGCC to mobilize further bank lending towards small and medium-sized enterprises (SMEs) in the country, with a focus on businesses supporting the green transition.

SME development is a high priority for Cambodia where a lack of access to formal banking services is common due to the nascence of green financing in the country.

The agreement follows a Memorandum of Understanding (MoU) signed in August 2024, which seeks to increase and upscale CGCC’s capacity through its involvement in a range of large-scale corporate and project finance deals.

CGCC and GuarantCo will look to execute counter- and co-guarantees under the FWA, with a particular focus on catalyzing sustainable infrastructure financing via the capital markets in Cambodia, said the statement.

The accompanying PIDG TA grant program will support CGCC in developing its technical capabilities in capital markets, allowing both organisations to scale their impact in Cambodia.

Denesh Srishanker, Group Head, Credit Enhancement Facilities at PIDG, said that the signing of this FWA and completion of its first transaction less than five months after our MoU with CGCC is testimony to the market acceleration we want to achieve together.

“Establishing in-country credit enhancement facilities is key to support local market development and is therefore an integral part of PIDG’s 2030 Strategy to mobilise innovative infrastructure projects across Africa and Asia,” said Srishanker.

Chinmay Naralkar, Deputy CEO at GuarantCo, said GuarantCo is delighted to put into place this FWA with the Credit Guarantee Corporation of Cambodia while cementing it with an inaugural transaction.

“The Framework will support CGCC’s growth in providing progressive sustainable infrastructure financing through local capital markets to support a green transition. Aligned with our strategic plans, we look forward to continuing to build our momentum in Cambodia to the benefit of the environment and local people and their livelihoods,” Naralkar said.

No Lida, CEO of the Credit Guarantee Corporation of Cambodia, said that this initiative aligns with CGCC’s strategy to enhance our bond guarantee capacity and support the development of SMEs in Cambodia.

“We seek to embed the international best practices represented by GuarantCo and PIDG as we build our capacity. This is a true cooperation in which we will learn from each other’s expertise while driving forward sustainable infrastructure for Cambodia,” he said.

Credit to: Khmer Times, Published on 20 January 2025

Women Entrepreneur Scheme 40% of CGCC Guaranteed Loan Book

Posted on by Sorn Chhorvyvatey

More than 40 percent of all loans guaranteed by the Credit Guarantee Corporation of Cambodia (CGCC) have been given to women entrepreneurs, CGCC CEO KL Wong in an exclusive interview told Khmer Times.

Currently, CGCC has guaranteed loans amounting to $200 million to 2,366 micro, small and medium enterprises (MSMEs) accounts as it marked three years of operation. Started during the Covid-19 pandemic to help businesses tide over the economic downturn, CGCC said it now has an outstanding guaranteed loan amount of $129 million and an outstanding guaranteed amount of $94 million from lending to MSME businesses that have provided jobs to more than 52,000 people in Cambodia.

Under the Women Entrepreneurs Guarantee Scheme (WEGS) there are many benefits for women taking a CGCC-guaranteed loan. Among the benefits are lower interest rates with the bank, a lower guarantee fee for the first year and higher coverage of loan guarantee, said Wong. Expanding, he said, that the guarantee fee for SMEs under the CGCC’s Business Recovery Guarantee Scheme (BRGS) was 1 percent. But for women entrepreneurs, this fee has been reduced to 0.5 percent from 1 percent for the first-year of the loan tenure. Apart from that, for SMEs under the BRGS scheme, about 70 percent of the loan is covered/guaranteed by CGCC. Whereas for the women entrepreneur scheme as high as 80 percent of the loan amount is guaranteed by CGCC.

The CGCC so far has supported many women entrepreneurs in diverse fields. One of the beneficiaries of its scheme is Rithypul founder and CEO Bopha Pen. In 2020, her financial awareness startup had a liquidity crunch. Needing working capital for day-to-day operations, she sought a bank loan. However, her collateral proved insufficient till CGCC stepped in and guaranteed her loan with one of its partner financial institutions CAMMA Microfinance.

Today Bopha, runs Rithypul and has launched training centres and a fintech mobile app Kotluy.

Another woman entrepreneur, who has benefitted from CGCC’s loan guarantee, is Thida Kheav’s SOGE. SOGE (also known as Solar Green Energy (Cambodia) Co), which is a renewable energy semiconductor manufacturer, lacked capital outlay for expansion. Till CGCC stepped in.

CGCC CEO KL Wong has said that the government is keen on giving priority to women-led businesses. When it first launched in 2021, about 23 percent of its total borrowers were women. This number went up to 35 percent of total borrowers in 2022. By the end of 2023, as high as 42 percent of CGCC’s total loan portfolio guaranteed is for women.

“We are proud of the gender diversity in our portfolio,” said Wong. CGCC currently has five loan guarantee schemes. Apart from WEGS and BRGS, CGCC has the Co-Financing Guarantee Scheme (CFGS), the Co-Financing Guarantee Scheme for Tourism (CFGS-TR) and Portfolio Guarantee Scheme (PGS).

CGCC CEO said that their scheme is tailored for SMEs, who form a vital part of Cambodia’s economy. SMEs represent 70 percent of employment opportunities in the country and contribute 58 percent to the country’s GDP. CGCC said that it is currently backing SMEs from diverse fields like agriculture, services, industry and services.

Wong also said the WEGS scheme has a ceiling cap for interest rates on loans. For the first-year interest rate the ceiling, inclusive of the first-year guarantee fees, was 8 percent for riel-denominated loans and 9 percent for dollar-denominated loans. And for microfinance institutions (MFIs) and deposit-taking institutions (MDIs), women could take loans that were fixed at an upper ceiling of 10 percent for riel-denominated loans and 11 percent for dollar-denominated loans.

He said women-led businesses were eligible for all types of loans, including term loans, overdrafts, trade financing facilities, etc. There was the option not just for new loans but also for refinancing old loans. CGCC said that it is currently guaranteeing both secured and unsecured loans. The maximum loan amount for working capital loans is $300,000
and the maximum amount for investment and business expansion plans is $500,000.

Credit to: Khmer Times, Publish on 16 August 2024

Guarantco and PIDG Partner With CGCC To Boost Sustainable Investment & Boost Onshore Local Currency Guarantees in Cambodia

Posted on by Sorn Chhorvyvatey

GuarantCo, the Private Infrastructure Development Group (PIDG), and the Credit Guarantee Corporation of Cambodia (CGCC) have formalized a partnership aimed at accelerating financial inclusion and enhancing investment in sustainable infrastructure in Cambodia. The three entities signed a Memorandum of Understanding (MoU) outlining their collaborative efforts to expand CGCC’s capabilities through a variety of transaction types supported by GuarantCo and PIDG Technical Assistance (TA).

This MoU marks an initial step towards a broader Framework Agreement anticipated to be finalized later this year. The agreement will include the syndication of GuarantCo’s guarantee exposure to CGCC and vice versa, alongside technical assistance to bolster CGCC’s operational capacity. GuarantCo, which has previously completed three transactions in Cambodia, aims to enhance CGCC’s capital market guarantee capabilities through the PIDG Credit Enhancement Facility initiative.

Boost The Availability Of Onshore Local Currency Guarantees

This initiative seeks to boost the availability of onshore local currency guarantees by partnering with local entities and leveraging products from across the PIDG Group, including re-guarantee facilities from GuarantCo and technical assistance from PIDG TA.

Read more: Royal Group Securities and Credit Guarantee Corporation of Cambodia Forge Strategic Partnership to Support Capital Market Development

The Technical Assistance program is set to provide CGCC with essential support, including the development of key guarantee documents, engagement of a transaction counsel for facility documentation, and capacity-building in credit, investment, and Sustainable Development Impact management processes.

Philippe Valahu, CEO of PIDG, emphasized the significance of local financing solutions in their 2030 strategy. “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,” Valahu stated.

Layth Al-Falaki, CEO of GuarantCo, expressed pride in the collaboration. “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.”

Enhancing Cambodia’s Financial and Infrastructural Landscape

Wong Keet Loong, CEO of CGCC, highlighted the benefits of the partnership. “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.”

This partnership signifies a strategic move towards enhancing Cambodia’s financial and infrastructural landscape, promoting sustainable development, and increasing investment opportunities within the region.

 

Credit to: Cambodia Investment Review, Published on 01 August 2o024

 

Meet the Business Owner Who Received a Loan Guaranteed by CGCC

Posted on by Sorn Chhorvyvatey

Agriculture is a key sector in supporting the national economic growth. Rice market also plays an important role in promoting agriculture. Chhun Thom Rice Mill was established in 1997, initially as a family business. After years of operation, customers know the brand and begin to trust our products. I have seen opportunities to expand this business, especially on technologies such as the purchase of additional rice mills and the expansion of the location of the mill.

I was introduced by ABA Bank staff about the loan guaranteed by CGCC which can provide me additional capital even without collateral. Thanks to the credit guarantee from CGCC, I was able to get more capital to expand my rice mill business.

I strongly believe that the CGCC’s credit guarantee 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