The Securities and Exchange Regulator of Cambodia (SERC) and Credit Guarantee Corporation of Cambodia Friday partnered to promote the issuance of guarantee bonds.

The memorandum of understanding was signed by SERC Director-General Sou Socheat and Wong Keet Loong, Chief Executive Officer of Credit Guarantee Corporation of Cambodia (CGCC).

The MoU aims to promote the development of the securities sector and the issuance of guaranteed bonds by supporting companies and financial institutions to obtain additional capital through the issuance of bonds including green bonds, social bonds, sustainability-linked bonds and sustainability bonds which are supported and guaranteed of repayment in case default by local guarantor to enhance local capital mobilization more effectively.

Both institutions also co-organized a workshop on “Benefits and Opportunities of Issuing Guaranteed Bonds in Cambodia” to raise awareness and disseminate the requirements to obtain guarantees for bonds and for small and medium enterprises (SMEs) and related institutions as well as highlight the benefits and opportunities of issuing guaranteed bonds.

Socheat said, “The MoU will attract more companies, including SMEs, to seek financing through the securities market and provide additional benefit 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 guarantees with special rates.”

Wong said that 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). “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,” he said.

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, said Ros Seilava, Secretary of State of the Ministry of Economy and Finance.

“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,” Seilava said.

Credit to: Khmer Times, Published on 02 September 2024