CGCC

Bond Guarantee Scheme

CGCC’s Bond Guarantee was approved by the Ministry of Economy and Finance. On 31 January 2024, CGCC launched as the First Cambodian Bond Guarantor after being accredited by the Securities and Exchange Regulator of Cambodia on 22 August 2023 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 guarantee on local corporate bond issuances on the Cambodia Securities Exchange (CSX) to support local companies raising funding and the development of securities sector in Cambodia.

Benefit of CGCC's Bond Guarantee​​

For capital market

  • Encourage more bond issuances
  • Attract investors to invest in corporate bonds
  • Provide more investment alternatives or options to investors
  • Increase liquidity of Khmer Riel (KHR) from the bond issuance.

For bond issuer

  • Improve the credit rating of the issuer   
  • Improve access to the capital market
  • Diversify sources of funding

For investor

  • More choices of investment
  • Protection against issuer’s default
  • More confidence in bond investment

Bond Guarantee Scheme Feature

Bond Guarantee

Bond Guarantee Structure

Claim Payment Structure

*The above structure are simplified for understanding only. The structure of the actual case may vary. 

Eligible Issuers

The issuer must meet the requirements as below:

Bond Guarantee Application Process

Bond Guarantee Process Flow
  • Corporate Information (i.e. company profile, shareholder structure, shareholders, directors, committees, key managements, etc.)
  • Financial Statement at least last 2 years
  • Bond Issuance Information (size, tenure, purpose, etc.)
  • List of Potential Investors
  • Issuer’s Corporate Governance (AML reports)
  • Issuer and Underwriter engagement letter
  • Other documents which may be required by CGCC as necessary
  • CGCC’s Bond Guarantee Application Form
  • Business plan/budget plan of issuer including cash flow projection
  • Constitutional documents (such as article of corporation, certificate of incorporation, patent, etc.)
  • Corporate approval (resolution/meeting minute of the board of directors and/or shareholders)
  • Regulatory approvals (valid licenses, permits, and all regulatory approvals/authorizations, M&A)
  • Report (due diligence reports, legal, audited financial statements, tax, insurance, litigation, environmental and social impact, credit rating, property evaluations report, etc.)
  • Security documents (if applicable) (hypothec and/or pledge agreements, etc.)
  • Legal opinion issued to the guarantor and issuer bond conditions (amount, currency, maturity date, etc.)
  • Agreement/contract with related parties for the bond issuance
  • Other documents which may be required by CGCC as necessary

Claim Process