Tag: Credit

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

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

Cambodia Investment Review

The Credit Guarantee Corporation of Cambodia (CGCC) has been recognized with a khAAA rating by the Rating Agency of Cambodia (RAC). This accreditation, recognized by the Securities and Exchange Regulator of Cambodia (SERC), signifies CGCC’s “Extremely strong capacity to meet financial commitments,” backed by the potential support of the Royal Government of Cambodia.

This rating marks a new moment for CGCC, recently accredited as Cambodia’s inaugural Bond guarantee institution by SERC. The move is strategically aimed at propelling the bond market’s growth, infusing it with newfound confidence. Following its accreditation, CGCC sought a credit rating from RAC and was subsequently honored with a khAAA rating and a stable outlook. This development is set to elevate the stature of corporate bonds under CGCC’s guarantee, instilling enhanced confidence among bond investors, encompassing financial institutions and insurance companies.

CGCC A Linchpin In Developing Cambodia’s Bond Market

H.E. Sou Socheat, the Director General of SERC, hailed this achievement, recognizing CGCC as a linchpin in Cambodia’s bond market. “CGCC’s rating underscores the firm’s robustness and ignites a culture of rating that fosters public trust. It also underscores the company’s dedication and proactive engagement in our bond market,” he remarked.

Read more: Credit Guarantee Corporation of Cambodia Partners with Cambodia Chamber of Commerce to Hit Aim of $100M in Loans for 2023

Mr. Wong Keet Loong, CGCC’s Chief Executive Officer, expressed his gratitude for this recognition. “Receiving the khAAA rating from RAC is a testament to our financial strength, enabling us to support larger SMEs in sourcing funds through bonds to expand their ventures. CGCC remains committed to bolstering economic development and fortifying trust and confidence among our partners,” he stated.

Under the guidance of the Ministry of Economy and Finance, CGCC has crafted a “Policy Framework on Bond Guarantee.” This framework received the highest endorsement from the Deputy Prime Minister, Minister of Economy and Finance, on May 17, 2023. In a subsequent move on August 22, 2023, SERC accredited CGCC as a bond issuance guarantor, a strategic initiative to bolster local firms in fundraising and nurturing the securities sector in Cambodia.

CGCC’s bond issuance guarantee service is poised to invigorate local company issuances, magnetize investors to corporate bonds, enhance the liquidity of the Khmer Riel, and uplift corporate bonds’ credit ratings. CGCC stands as Cambodia’s sole credit guarantee corporation, established under the auspices of Hun Sen and operating with the technical and financial support of the Ministry of Economy and Finance. Its core mission is to extend credit guarantees, fostering financial inclusion and catalyzing the growth of SMEs across Cambodia.

KhAAA – A Cambodian-Specific Credit Rating

The authorization of RAC by SERC in 2022, a collaboration between the Royal Group and 3E:Fii Capital, marked a significant stride in developing Cambodia’s capital markets. Credit ratings, symbolized by codes like AAA, BB, and CC, reflect the creditworthiness of corporate or government bonds, with higher ratings typically attracting lower interest rates due to perceived lower risks.

With the operationalization of RAC, Cambodian entities can now obtain a nation-specific credit rating, such as ‘khAAA’ or ‘khBB,’ essential for all listings on Cambodia’s Securities Exchange. This move dovetails with the regulator’s plan to introduce a dual ‘Khmer’ and ‘Global’ rating system, positioning Cambodia’s sovereign rating at AAA within the local category.

As Cambodia steps into this new era of financial sophistication, CGCC’s khAAA rating not only represents a landmark achievement but also heralds a new chapter of confidence and growth for the nation’s burgeoning bond market.

Credit to: Cambodia Investment Review, Published on 23 January 2024

The state-owned Credit Guarantee Corporation of Cambodia (CGCC) has been rated khAAA by the Rating Agency of Cambodia (RAC), after its accreditation by the Securities and Exchange Regulator of Cambodia (SERC), making it the first debt securities guarantee institution in the country, enabling it to support local companies in issuing bonds.

The initiative aims to increase the liquidity of the Khmer riel through the issuance of financial instruments and enhance the credit rating of corporate bonds.

The move is part of a broader strategy to stimulate the sector’s development by fostering greater market confidence.

Wong Keet Loong, CEO of CGCC, said the khAAA rating enables them to assist small and medium-sized enterprises (SMEs) in need of additional funds through debt securities issuance in the capital market.

“The rating demonstrates the CGCC’s financial capacity to assist larger SMEs capable of issuing bonds to secure funding for their business expansion. CGCC remains instrumental in fostering economic development and in strengthening the trust and confidence of our partners,” he said.

SERC director-general Sou Socheat confirmed that the corporation’s rating allows it to aid other companies in issuing bonds on the Cambodia Securities Exchange (CSX).

“CGCC is a guarantor in the Cambodian bond market and its rating indicates the company’s soundness. Moreover, CGCC’s rating starts the culture of rating in the market, building public confidence and showcasing the company’s commitment and willingness to actively engage in our bond market,” he explained.

The corporation formulated a policy framework on bond guarantee and received endorsement from the Ministry of Economy and Finance on May 17, 2023.

On August 22, SERC accredited CGCC as a bond issuance guarantor, supporting local companies and aiding the growth of the Kingdom’s securities sector.

Established under sub-decree No 140/ANKR/BK on September 1, 2020, the corporation launched its $200 million Business Recovery Guarantee Scheme (BRGS) on March 29, 2021 in a bid to broaden access to formal loans from participating financial institutions (PFIs) for working capital, investment and business expansion purposes, according to CGCC.

As of December 22, the corporation’s outstanding loans amounted to $113.96 million, with a non-performing loan (NPL) ratio of 5.41. Total claim payouts stood at $123,336.

The corporation has supported 1,731 micro, small and medium enterprises (MSMEs) along with 149 larger firms, as per CGCC.

Credit to: The Phnom Penh Post, Published on 22 January 2024

Credit Guarantee Corporation of Cambodia (CGCC) has been rated khAAA by the Rating Agency of Cambodia (RAC), a credit rating agency accredited by the Securities and Exchange Regulator of Cambodia.

This rating indicates that CGCC has an “extremely strong capacity to meet financial commitment” with the likelihood of support from the Royal Government of Cambodia.

CGCC was recently accredited as the first Bond guarantee institution in Cambodia by the Securities and Exchange Regulator of Cambodia (SERC) to help boost the bond market development in Cambodia by building more market confidence.

After obtaining the accreditation from SERC, CGCC has applied for a credit rating from RAC. As a result, CGCC was rated khAAA with stable outlook. This will enhance the rating of the corporate bonds guaranteed by CGCC and bring more confidence for bond investors, including financial institutions and insurance companies.

Sou Socheat, delegate of the Royal Government in charge as Director General of the SERC said, “CGCC is a guarantor in Cambodia bond market and its rating indicates the soundness of the company. In addition, the rating of CGCC demonstrates and commences the culture of rating to build more confidence from public and it also shows the commitment and the willingness of the company to actively participate in our bond market.”

Wong Keet Loong, Chief Executive Officer of CGCC, said, “We are honoured to receive the khAAA rating from RAC. This rating reflects the financial capability of the company to support larger SMEs who can issue bonds to source funding to expand their business. CGCC continues to play a vital role in supporting economic development and further enhancing the trust and confidence of our partner.”

Under the policy direction from the Ministry of Economy and Finance, the CGCC has developed a “Policy Framework on Bond Guarantee” and has received the highest approval from Deputy Prime Minister, Minister of Economy and Finance, on this policy framework on May 17, 2023.

On 22 August 2023, the Securities and Exchange Regulator of Cambodia (SERC) issued an accreditation letter to CGCC as a guarantor for bond issuance to support local companies raising funds and the development of the securities sector in Cambodia.

The guarantee on bond issuance service of CGCC can provide further support to encourage bond issuances by local companies, attract investors to invest in corporate bonds, increase the liquidity of Khmer Riel from the bond issuance and improve the credit rating of corporate bonds.

CGCC is the only credit guarantee corporation in Cambodia, established by the decision of former Prime Minister 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.

Credit to: Khmer Times, Published on 22 January 2024