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Author: Sorn Chhorvyvatey

Appointment and Transfer Ceremony of CEO of CGCC

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On 27 September 2024, Credit Guarantee Corporation of Cambodia (CGCC) organized the “Appointment and Transfer Ceremony of CEO of CGCC”, presided over by H.E. Ros Seilava, Secretary of State of the Ministry of Economy and Finance (MEF), Chairman of CGCC, and honorable presence of the members of Board of Directors (BoDs) of CGCC, local and international partners, financial institutions, business associations, and related stakeholders approximately​ more than 100 participants at the Oakwood Premier Phnom Penh.

This ceremony marked Mr. Wong Keet Loong‘s official farewell and the announcement of CGCC’s new CEO. It was organized to express CGCC’s gratitude for Mr. Wong’s participation in establishing and leading CGCC as the CEO and an opportunity to express his appreciation for related stakeholders’ support and collaboration during his tenure, and also to officially announce the appointment and transfer of the CEO of CGCC through the Sub-Decree No. 872 ANKR.TT, highly approved by Samdech Moha Borvor Thipadei Hun Manet, Prime Minister of the Kingdom of Cambodia, with the recommendation from H.E. Akka Pundit Sopheacha Aun Pornmoniroth, Deputy Prime Minister, Minister of MEF, to appoint Mr. No Lida to be the CEO of CGCC, a key person in the development of CGCC and leading CGCC as the deputy CEO in the last 4 years, and previously served at the MEF for more than 10 years with full of experiences and capacity to continue leading CGCC.

Through this ceremony, CGCC also officially launched the “Sustainable Green Financing Facility (SGFF),” a blended financing model developed in collaboration between CGCC and the United Nations Development Program (UNDP), which will enable development partners and Participating Financial Institutions (PFIs) to establish a blended financing facility with CGCC to provide financing to green sector investments in favorable terms to support the Sustainable Development Goals (SDG). The launching ceremony was highly witnessed by H.E. Chairman and members of the BoDs of CGCC, Mr. Shakeel Ahmad, Deputy Country Representative of UNDP, and CEO of CGCC.

H.E. Ros Seilava mentioned, “The success and growth of CGCC so far have not come by chance; it has come from the professional roles, responsibilities, and commitment of all CGCC management and staffs at all levels, especially the support from good cooperation of all stakeholders, including the government institutions, development partners, associations, participating financial institutions, and SMEs.”

Mr. Wong Keet Loong remarks, “I’m honored to have the opportunity to lead CGCC from its inception to where it is today. CGCC has achieved many milestones, from being the first credit guarantee and bond guarantee institution in Cambodia. It will continue to play a critical role in developing the growth of MSMEs by improving financial access and financial literacy.”

Mr. No Lida mentioned, “I am deeply honored to have earned the trust of the Board of Directors of CGCC, the Deputy Prime Minister, Minister of Economy and Finance, and most importantly, Samdech Moha Borvor Thipadei, HUN MANET, Prime Minister of Cambodia, who appointed me as the CEO of CGCC. I am fully committed to doing my best for CGCC. I will utilize all my abilities to bring CGCC forward as a merit and principle-based institution and always uphold CGCC’s core values of TRUSTS – Trustworthy, Responsible, United, Sustainable, Transparent, and State Policy-Oriented.”

CGCC was incorporated in November 2020 and launched the first credit guarantee scheme on 29 March 2021. As of the end of August 2024, CGCC had approved 2,678 guaranteed accounts on guaranteed loans amounting to approximately USD 225 million.

 

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MAFF, CGCC ink pact to Develop Modern Farming Community

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Ministry of Agriculture, Forestry and Fisheries (MAFF) and Credit Guarantee Corporation of Cambodia (CGCC) Tuesday signed a Memorandum of Understanding (MoU) to promote the development of the modern farming community.

The MoU signing ceremony was presided over by Dith Tina, Minister of Agriculture, Forestry and Fisheries (MAFF) and Ros Seilava, Secretary of State of the Ministry of Economy and Finance and Chairman of the Board of Credit Guarantee Corporation of Cambodia (CGCC) at the Ministry of Agriculture.

Underlining the essence of the MoU, Tina said the new cooperation will have a production based on market demand, good quality, reduce production cost and economic efficiency.

Tina further said that developing the modern farming community is the priority of the Royal Government of Cambodia.

“Modern farming community plays an important role and acts as a strong shield in helping farmers who lack technology, face climate change challenges, lack credit and face market risks. Farmers who volunteer to become members of the modern farming community will receive sufficient investment and capital for potential agricultural products such as rice, cassava and cashews,” the minister said.

Applauding the Credit Guarantee Corporation of Cambodia (CGCC), Tina said CGCC is a good partner in evaluating and providing key inputs to the business plan for the modern farming community to become a reality and be successful.

CGCC is a state-owned enterprise under the financial and technical guidance of the Ministry of Economy and Finance with a main mission to provide credit guarantees to improve financial inclusion and support the development of small and medium enterprises.

Khim Finan, Undersecretary of State and spokesman for the MAFF wrote on his social media on Tuesday that the MoU between the Ministry of Agriculture and the CGCC will open the way for modern farming communities to have capital to cover their operating expenses and as well as receive lower interest rates than other general loans.

“Due to the robustness of the business plan and the clear marketing contracts in advance, CGCC is prepared to provide a credit guarantee service on behalf of the community, which will allow the community to have enough resources to run its operations with no need for each member to have bank debt. This is another important step for our modern community,” said Finan.

Speaking at the ‘7th Cambodia Rice Forum 2024’ under the theme ‘Transforming the Cambodia Rice Supply Chain to be Resilient, Inclusive and Sustainable’, Prime Minister Hun Manet lauded the efforts and achievements of modern farming communities and called for more such farming communities across the country.

He added that so far, the development has taken place with 8 modern farming communities covering almost 2,000 hectares in the first phase, and he called on keep continuing to do so to grow even more.

 

Credit to: Khmer Times, Published on 19 September 2024

 

CGCC and MAFF signed a MoU on Credit Guarantee Services for the Development of Modern Agricultural Cooperatives (ACs)

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On 17 September, 2024, Credit Guarantee Corporation of Cambodia (CGCC) and the Ministry of Agriculture, Forestry and Fisheries (MAFF) signed a Memorandum of Understanding (MoU) on  Credit Guarantee Services for the Development of Modern Agricultural Cooperatives (ACs) presided over by H.E. Dith Tina, Minister of MAFF, and H.E. Ros Seilava, Secretary of State of the Ministry of Economy and Finance and Chairman of CGCC, at MAFF.

The MoU will allow both institutions to achieve common goals in supporting SMEs, especially the modern ACs on agriculture development, and supporting CGCC to improve financial inclusion in Cambodia. At the same time, this cooperation will positively affect Cambodia’s agriculture sector by promoting broader access to formal finance.

H.E. Minister welcomed and was pleased to witness the signing MoU between MAFF and CGCC to jointly develop modern ACs, which is the priority of the government’s policy in the agricultural sector to equip the technical foundation, production according to market demand, good quality, reduce production costs and economic efficiency.

H.E. Secretary of State and Chairman of CGCC expressed his congratulations to the MOU between MAFF and CGCC, which is a very important for the cooperation between both parties to join hands to promote the development of modern ACs in Cambodia by increasing the productivity and efficiency of agricultural production and use the Royal Government’s credit guarantee mechanism to improve access to finance for the modern ACs in order to support Cambodia’s economic growth.

Agriculture is the priority sector in obtaining the credit guarantee through CGCC’s Participating Financial Institutions (PFIs). As of end of August 2024, CGCC provided guarantee on more than 2600 accounts, in total guaranteed loans USD 224 million, in which 87 accounts are the businesses in the agriculture sector, approximately USD 15 million.

 

CGCC and CCC Co-organized a Workshop on “Capacity Building and Improving Financial Literacy of SMEs” in Oddar Meanchey

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On 09 September 2024, Credit Guarantee Corporation of Cambodia (CGCC) and Cambodia Chamber of Commerce (CCC) co-organized a workshop on “Capacity Building and Improving Financial Literacy of SMEs” in Oddar Meanchey province in collaboration with Siem Reap-Oddar Meanchey Chamber of Commerce with around 50 participants from Management and staff of Participating Financial Institutions (PFIs) and business owners in Oddar Meanchey province.

The workshop was presided over by Mr. Un Sadet Vice President of Cambodia Chamber of Commerce, chapter based in Siem Reap-Oddar Meanchey, Mr. No Lida, Deputy CEO of CGCC, Mr. Tith Kamrong, Financial Literacy Expert and Founder of Rithipul Company, and the presentations by Ms. Lim Chanthida, Director of Centralized Operations, Ms. Vong Sovina, Senior Executive of Product Development and Cooperations and representatives from Acleda Bank and Canadia Bank as well.

Through this workshop, business owners gained more understanding of the benefits of credit guarantee and especially understand the readiness to obtain loans from banks and microfinance institutions, as well as understanding how to use loans responsibly and correctly and have the opportunity to practice and get feedback Improved feedback from trainers / experts on loan readiness.

CGCC visits PFIs provincial branches in Oddar Meanchey, Banteay Meanchey & Battambang to Enhance Collaboration on the Credit Guarantee

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From 10 to 24 September 2024, CGCC team led by Ms. Lim Chanthida, Director of Centralized Operations of CGCC, visited provincial branches of selected Participating Financial Institutions (PFIs) to discuss with the management and staff of the selected PFIs regarding the implementation of CGCC’s credit guarantee schemes and to increase more awareness of the credit guarantee. The selected PFIs in 3 provinces include:

– Oddar Meanchey:  Acleda Bank, LOLC MFI.

– Banteay Meanchey: Maybank, Canadia Bank, ABA Bank, and Prince Bank

– Battambang: Phillip Bank and FTB Bank

The discussions with CGCC PFIs’ provincial branches in these 3 potential provinces provided opportunities for both CGCC and PFIs to enhance mutual understanding of credit guarantees and opportunities for PFIs to increase lending to potential borrowers that lack collateral when requesting loans.

 

 

CGCC’s Workshop on “Investment Support Facility (ISF)” in Siem Reap Province

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On 7th September 2024, Credit Guarantee Corporation of Cambodia (CGCC) organized a workshop on “Investment Support Facility (ISF)” in Siem Reap province in, designed to share about Investment Support Facility (ISF), a joint-project under CAPFISH-Capture: Post-harvest Fisheries Development Project jointly implemented by the Fisheries Administration and the United Nations Industrial Development Organization (UNIDO Cambodia), co-funded by the European Union, and having CGCC as a project manager. The workshop was presided over by Mr. Tea Kim Soth, Director of Siem Reap Provincial Department of Agriculture, Forestry and Fisheries, Mr. Thinny Sothy, Siem Reap Provincial Fisheries Administration, Mr. No Lida, Deputy CEO  of CGCC, Ms. San Sokrina, Manager of Product Development and Cooperation, Mr. Pong Leang Oun, UNIDO’s National Private Sector Development Coordinator, including the participation of the management and staff of Participating Financial Institutions (PFIs) and entrepreneurs who are small and medium enterprises about 70 participants.

The seminar is also a forum for stakeholders to learn more about the needs of business owners in the post-harvest fisheries sector in obtaining guaranteed loans to develop their business, especially in response to the lack of collateral.

SERC, CGCC Sign Pact to Promote Issuance of Guaranteed Bonds

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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

 

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

 

The Signing of MOU between SERC and CGCC and Workshop on “Benefits and Opportunities of Issuing Guaranteed Bonds in Cambodia”

Posted on by Sorn Chhorvyvatey

In the Morning of Friday, August 30, 2024, with the honor permission from H.E. Dr. Aun Pornmoniroth, Deputy Prime Minister, Minister of Economy and Finance and Chairman of the Non-Bank Financial Services Authority (FSA), H.E. Sou Socheat, Delegate of the Royal Government in Charge as Director General of the Securities and Exchange Regulator of the  Cambodia (SERC) and Mr. Wong Keet Loong, Chief Executive Officer of Credit Guarantee Corporation of Cambodia (CGCC) signed a Memorandum of Understanding (MoU) on “Collaboration in Promoting the Development and the Issuance of Guaranteed Bonds” and co-organized the workshop on “Benefits and Opportunities of Issuing Guaranteed Bonds in Cambodia” under the high presidency of H.E. Ros Seilava, Secretary of State of the Ministry of Economy and Finance and Chairman of CGCC and Vice Chairman of the Board of FSA at FSA building.

This MoU signing ceremony was organized to promote the development of 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 in order to enhance local capital mobilization more effectively. Back to back with this MoU signing ceremony, both institutions also co-organized the workshop on “Benefits and Opportunities of Issuing Guaranteed Bonds in Cambodia” in order 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.

In this event, H.E. Delegate stated that “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 also stated 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). 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.”

H.E. Ros Seilava​ has added that “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.”

This event was attended by senior representatives including: General Secretariate of FSA and regulators under FSA, CSX, Cambodia Association of Securities Firms, Cambodia Chamber of Commerce, Young Entrepreneurs Association of Cambodia, the Association of Bank in Cambodia, Rating Agency of (Cambodia) Plc., listed companies and potential listed companies and media partners with a total of 100 participants. The workshop was sharing by resources speakers who enrich of professional experiences from SERC, CGCC, Telcotech LTD., Royal Group Securities Plc. and Prudential (Cambodia) Life Assurance Plc.

 

Means of Contact:

SERC

Research, Training, Securities Market Development and International Relations Department via mobile number (855) 95 775 772 (Khy Pochchhing) or Email: [email protected]

CGCC

Division: Strategy and Business Development Department via mobile number (855) 78 222 186 (Sorn Chhorvyvatey) or Email: chhorvyvatey.sorn@cgcc.com.kh

 

About SERC

SERC is an authority to supervise, monitor and develop the securities sector in the Kingdom of Cambodia that having seen the Preah Reach Kram No. NS/RKM/0121/003 dated January 16, 2021 that promulgate the Law on the Conduct and the Organization of the Non-Bank Financial Services Authority and having seen the Preah Reach Kram No. NS/RKM/ 1007/028 dated October 19, 2007 that promulgate the Law on The Issuance and Trading of Non-Government Securities and Anukret No. 97/ANKR/BK dated July 23, 2008 on the Organizing and Functioning of the Securities and Exchange Commission of Cambodia. SERC has its official website: www.serc.gov.kh and official Facebook page: www.face​book.​com/serc.gov.kh.

 

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. On 31 January 2024, CGCC launched as the First Cambodian Bond Guarantor after being accredited by the SERC) 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 guarantees on local corporate bond issuances on the CSX to support local companies raising funding and the development of the securities sector in Cambodia. The official website of CGCC: www.cgcc.com.kh and official Facebook page: https://www.facebook.com/officialcgcc.

 

 

The Signing of Memorandum of Understanding between The Securities and Exchange Regulator of Cambodia and Credit Guarantee Corporation of Cambodia on Collaboration in Promoting the Development and the Issuance of Guaranteed Bonds and Workshop on “Benefits and Opportunities of Issuing Guaranteed Bonds in Cambodia”

Posted on by Sorn Chhorvyvatey

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