CGCC

Menu
Menu

Author: Sorn Chhorvyvatey

CGCC​ Participated in the Seminar on Promoting Co-Financing to Support Entrepreneurs in Solar Technology in the Aquaculture Sector

Posted on by Sorn Chhorvyvatey

On 20 March 2024, Ms. San Sokrina, Manager of Product Development at CGCC​ participated and was the guest speaker at a seminar on promoting co-financing to support entrepreneurs in solar technology in the aquaculture sector to find the need for more innovative financing solutions, advocating for investment in clean energy development through a blended approach that combines grants and loans.

Ms. San Sokrina stated that blended financing, a combined available fund from different sources could play a pivotal role in advancing financing inclusion and fostering the growth of small and medium enterprises (SMEs) in Cambodia.

CGCC Provides $174 million Credit Guarantees to 2,070 Businesses as of February

Posted on by Sorn Chhorvyvatey

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

Posted on by Sorn Chhorvyvatey

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

Posted on by Sorn Chhorvyvatey

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

Posted on by Sorn Chhorvyvatey

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

Posted on by Sorn Chhorvyvatey

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

CGCC hosted Annual Seminar on ‘Diversifying Credit Guarantee Mechanism for Sustainable Financing of MSMEs’

Posted on by Sorn Chhorvyvatey

The Ministry of Economy and Finance (MEF) and the Credit Guarantee Corporation of Cambodia (CGCC) co-organised the CGCC Annual Seminar on “Diversifying Credit Guarantee Mechanism for Sustainable Financing of MSMEs” on January31, 2024.

The event at Sofitel Phnom Penh Phokeetra was presided over by H.E. Ros Seilava, Secretary of State at the Ministry of Economy and Finance, high representative of Deputy Prime Minister,Minister of Economy and Finance, H.E. Dr. Aun Pornmoniroth.

At the seminar, H.E. Ros Seilava–launched “CGCC as the First Cambodian Bond Guarantor” and bestowed the MEF’s Outstanding Awards to participating financial institutions.

These included Canadia Bank, Sathapana Bank, ABA Bank, LOLC Microfinance and AMK Microfinance, which have disbursed the most guaranteed accounts,while ABA Bank was honoured witha Special Award for maintaining the best “Asset Quality in Guaranteed Loans in 2023”.

CGCC also launched the “Entrepreneurship Program Initiative of CGCC” (EPIC), its flagship capacity-building programme to promote greater entrepreneurship and financial literacy among micro, small and medium enterprises (MSMEs).

The seminar discussed several important topics, including the government’s policies on credit guarantees, presented by a representative of the National Bank of Cambodia (NBC), international experiences in credit guarantees, and bond guarantees by the Korea Credit Guarantee Fund (KODIT) and GuarantCo from Singapore.

There was also a panel discussion on benefits and opportunities regarding Guaranteed Bonds in Cambodia’s capital market development.

The panellists included representatives from the Securities and Exchange Regulator of Cambodia (SERC), the Cambodia Association of Securities Firms, Forte Group, and the Credit Guarantee and Investment Facility (CGIF) from the Philippines.

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

Credit to: The Phnom Penh Post, Published on 14 February 2024

For more info, please visit: https://cgcc.com.kh/en/article/14014/.

CGCC and Bridge Bank Signed on Credit Guarantee Agreement to Support Businesses in Access to Guaranteed Loans

Posted on by Sorn Chhorvyvatey

On 07 February 2024, Credit Guarantee Corporation of Cambodia (CGCC) and Bridge Bank officially announced the partnership in the signing ceremony on the Credit Guarantee Agreement to provide support to micro, small, and medium enterprises (MSMEs) and large enterprises, in easier access to bank’s loans with CGCC’s Guarantee for business development.

The partnership between CGCC, a state-owned enterprise, under the financial and technical guidance of the Ministry of Economy and Finance, and Bridge Bank, a commercial bank with a commitment to support the local MSMEs, will enable Bridge Bank to expand the opportunity to be confident in providing the loans to financially viable businesses but lack of collaterals, by using credit guarantees of CGCC.

CGCC and Bridge Bank

Mr. Wong Keet Loong, Chief Executive Officer of CGCC said: “This partnership with Bridge Bank opens up a new channel for us to reach out to support the Bank’s SMEs in getting loans when they lack collateral.  Our participating FIs will evaluate the eligibility of SMEs for guaranteed loans as they know the financial needs and repayment capability of the borrowers. Our guarantees are vital to ensure the continuous supply of credit into the market to support more economic activities.”

CGCC and Bridge Bank

Mr. Richard Liew, CEO of Bridge Bank said: “SMEs are one of the backbones of Cambodia’s economy, contributing significantly to the country’s GDP growth as well as providing employment opportunities to all Cambodians. However, some of these businesses often face challenges in accessing financing to support their growth. That is where this partnership between Bridge Bank and CGCC comes in. Through this MoU, we hope to provide MSMEs with easier access to loans by leveraging CGCC’s expertise in credit guarantee services. This will help to mitigate the risk of default and enable us to offer more competitive loan rates, thus increasing the affordability of credit for MSMEs.”

Through this agreement, Bridge Bank has now become one of the 28 Participating Financial Institutions (PFIs) of CGCC, committing to assisting business entities in line with the Government’s direction to support MSMEs. CGCC and Bridge Bank strongly believe that this partnership will be one of the key instrumental in addressing the financing gap faced by many MSMEs and will contribute to the growth and development of the country’s economy.

CGCC and Bridge Bank

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. Visit CGCC’s website for more information: www.cgcc.com.kh

 

About Bridge Bank

Bridge Bank provides a comprehensive range of banking products, such as loan services including home, automotive, personal, and business loans, as well as deposit services, payroll and remittance services.

Bridge Bank’s vision and mission are “to be your preferred financial partner of today and generations to come,” and “to provide financial services you can trust through our global service standards, making banking simple and secure.”

Please visit us for more details via www.bridgebank.com.kh​

Post-Covid recovery sees women-led businesses on the uptick

Posted on by Sorn Chhorvyvatey

In 2020, entrepreneur Bopha Pen found herself at a crossroads, when Covid hit her business. She’d started Rithypul in 2012 to increase financial awareness in the country.

But by 2020, her business did not have sufficient working capital for day-to-day operations. When she sought a bank loan, the property collateral proved insufficient, till the Credit Guarantee Corporation of Cambodia (CGCC) stepped in. CGCC guaranteed her loan with one of its partner financial institutions CAMMA Microfinance and the startup Rithypul managed to tide over Covid.

Bopha, now continues to run Rithypul and has launched training centres and a fintech mobile app – Kotluy.

She told CGCC in its monthly newsletter that the fresh capital helped her “meet marketing, advertising, and overall business operation costs. We have expanded our business with more staff and customers.”

Another unique, woman-led business that has benefitted from CGCC’s loan guarantee is Thida Kheav’s SOGE. SOGE, which expanded to Solar Green Energy (Cambodia) Co., is a renewable energy semiconductor manufacturer. Since manufacturing requires upfront heavy capital outlay, CGCC stepping in has proved effective for this business too.

And women like Bopha Pen and Thida Keav are one of hundreds of such women beneficiaries. CGCC has guaranteed business loans to as many as 811 women entrepreneurs as of December 31, 2023; which forms about 42 percent of its overall loan portfolio.

And this has been a steady growth. CGCC which launched its first loan guarantee scheme in 2021 – had 23 percent of its total borrowers being women in 2021. This number increased to 35 percent of total borrowers in 2022; and by 2023 women business were as much as 42 percent of CGCC’s total loan portfolio.

At CGCC’s annual seminar on Wednesday, titled “Diversifying credit guarantee mechanism for sustainable financing of MSMEs,” H.E. Ros Seilava, Secretary of State of Ministry of Economy and Finance, high representative of H.E.Deputy Prime Minister, Minister of Economy and Finance of Cambodia, told the Khmer Times that “CGCC is proud of the gender diversity in its portfolio. We feel 42 percent of loans being given to women is a substantial number. We will continue supporting women-led businesses.”

CGCC currently has five loan guarantee schemes, namely the Business Recovery Guarantee Scheme (BRGS), the Co-Financing Guarantee Scheme (CFGS), the Co-Financing Guarantee Scheme for Tourism (CFGS-TR), Portfolio Guarantee Scheme (PGS) and the Women Entrepreneurs Guarantee Scheme (WEGS).

To close the gender gap, CGCC has designed WEGS such that banks and microfinance institutions are incentivised to lend more to women. Under WEGS, CEGS gives a higher guaranteed coverage (higher percentage of the loan being guaranteed) and lower fees (since a few percentage points make a huge difference when it comes to taking bank loans).

Anyone familiar with bank loans is probably aware that documentation is the most arduous part of the loan application. To reduce the documentation work involved, CGCC has launched a portfolio guarantee scheme (PGS). Under the PGS, banks and MFIs can bundle together loans that are similar and get the guarantee approval on the bundle – rather than for each loan. For what loans can be bundled together like this – CGCC has drawn up with its partner financial institutions a mutual agreement. Being pre-agreed, banks and MFIs can now enroll multiple loans in PGS to get faster-guaranteed approval.

Credit to: Khmer Times, Published on 06 February 2024

 

Workshop on “Primary-CBO Guarantee Best Examples of KODIT’s Innovation in the Capital Market” for CGCC Provided by Korea Credit Guarantee Fund (KODIT)

Posted on by Sorn Chhorvyvatey

On 01 February 2024, the workshop on “Primary-CBO Guarantee Best Examples of KODIT’s Innovation in the Capital Market” was held at the CGCC’s head office, with a guest honor and a presentation shared by Mr. Choi Taejin, Director General of Capital Market Department, Korea Credit Guarantee Fund (KODIT), participated by CGCC’s managements and staff, led by Mr. Wong Keet Loong, CGCC’s CEO.

This workshop focuses on the credit guarantee to support the development of banking sector and MSMEs through Primary-CBO guarantee best examples of KODIT’s innovation in the capital market.