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Signing of a $3 million Portfolio Guarantee Agreement for Women Entrepreneurs Between CGCC and Prince Bank

Posted on by Sorn Chhorvyvatey

On 13 July 2023 at Prince Tower, CGCC and Prince Bank signed a $3 million Portfolio Guarantee Agreement for women entrepreneurs. The Agreement is signed by Mr. Wong Keet Loong, Chief Executive Officer of CGCC, and Mr. Honn Sorachna, Managing Director and CEO of Prince Bank, with a participation of Lork Chum Teav Oknha Keo Mom, President of Cambodia Women Entrepreneurs Association (CWEA).

The Portfolio Guarantee Scheme (PGS) for Women Entrepreneurs of CGCC and Prince Bank is effective from 01 August 2023 which will enables Prince Bank to disbursed guaranteed loans to women entrepreneurs without having to get CGCC’s guarantee approval on each loan prior to loan disbursement. This PGS for Women Entrepreneurs will support quicker, easier, and more CGCC’s guaranteed loan disbursements through Prince Bank to women entrepreneurs who lack of collateral.

Signing of a $3 million Portfolio Guarantee Agreement for Women Entrepreneurs Between CGCC and Prince Bank
Signing of a $3 million Portfolio Guarantee Agreement for Women Entrepreneurs Between CGCC and Prince Bank

Mr. Wong Keet Loong, CEO of CGCC said “This USD3mil portfolio guarantee scheme (PGS) with Prince Bank was structured specifically to support women entrepreneurs in providing guaranteed loans.  We hope that with the bank’s strong network, we can increase our guarantees to women-owned businesses.  As at todate, CGCC has guaranteed 40% of its total guarantees of USD130mil to women-owned MSMEs ie. USD50mil.”

He added that “The woman scheme comes with lower interest rates and guarantee fees for the 1st year.  These favorable terms will enable women MSMEs to obtain lower cost of financing.”

Signing of a $3 million Portfolio Guarantee Agreement for Women Entrepreneurs Between CGCC and Prince Bank
Signing of a $3 million Portfolio Guarantee Agreement for Women Entrepreneurs Between CGCC and Prince Bank

Mr. Honn Sorachna, Managing Director and CEO of Prince Bank Plc. stated “We are honored and excited to join the force with CGCC to boost the local economy by supporting the MSMEs segments, especially women MSMEs. Women are the cornerstone of a strong family foundation and in their community. Their involvement and contribution to commerce and the economy at large are very significant and very much lauded. women entrepreneurs with unique abilities and determination are admirable and should be emulated. They deserve the support and encouragement to grow from strength to strength. Under the Portfolio Guarantee Scheme (PGS), we aim to provide better liquidity with special conditions to women-owned micro, small, and medium enterprises to give them extra support for their working capital to invest and sustain their businesses. It’s always our top priority to support Cambodian individuals and businesses for their financial needs; we are trying harder to enhance our products and services and make them conveniently accessible to our Cambodians.”

Prince Bank has become CGCC’s Participating Financial Institutions (PFI) since 2021 and has actively utilized CGCC’s credit guarantees to address the MSMEs’ challenge of lacking collaterals by providing guaranteed loans. CGCC and Prince Bank hope that this PGS for Women Entrepreneurs will support Cambodian women entrepreneurs that are mainly MSMEs, the backbone of the economy.

Signing of a $3 million Portfolio Guarantee Agreement for Women Entrepreneurs Between CGCC and Prince Bank
Signing of a $3 million Portfolio Guarantee Agreement for Women Entrepreneurs Between CGCC and Prince Bank

About CGCC

CGCC is the first-ever credit guarantee corporation in Cambodia, established by the decision of Samdech Akka Moha Sena Padei Techo Hun Sen, Prime Minister as a state-owned enterprise under the technical and financial guidance of the Ministry of Economy and Finance. CGCC’s main mission is to provide credit guarantees to lenders on loans made to businesses based on international standards to share the risk with lenders and to improve financial inclusion.

About Prince Bank Plc.

Prince Bank Plc. started its business operations in 2015 as a private microfinance institution under the former name “Prince Finance Plc.” and was transformed into a commercial bank with license No. B 46 was granted by the National Bank of Cambodia on 18 July 2018. With a strong capital base, robust technological capabilities, solid expertise, and extensive knowledge of the local market, the bank aspires to become the industry leader by offering differentiated financial solutions through a mix of channels with great convenience to our customers. We are keen on contributing to the development of small and medium enterprises that constitute a key segment of our target customers. Currently, Prince Bank Plc. has 34 branches and 82 ATM locations nationwide.

I’m Financially Literate Program receives success after the launch of the 1st cohort to Help Business Owner and especially Women in Business Become Financially Literate and Financial Inclusive

Posted on by Sorn Chhorvyvatey

Sathapana Bank, a leading commercial bank in Cambodia, successfully launched the first cohort of I’m financially Literate (IFL) in partnership with Khmer Enterprise, Manulife Cambodia, and Credit Guarantee Corporation of Cambodia (CGCC) to provide non-financial services to SMEs and MSMEs and especially women in business.

The success of the first cohort is acknowledged by the business owners who attended the class. Business owners gained a new understanding of their business model, cash flow management and the use of capital and debt.

“Throughout the 4-day course over two weekends, there were crucial lessons related to financial management especially on how to read the financial report and financial analysis. I, now, learnt that there are 4 ways to read the financial report,” said Mrs. Kheng Khattavy, Founder and Managing Director of Eternity Title Co., Ltd.

The success of the program is due to the course material designed to solve the pain-points of business owners including a lack of business and financial literacy skills, the lack of confidence or reluctance to apply for loans, improper cash flow management and credit score building. This course is delivered with in-depth knowledge, practical example and case studies lectured by two certified financial literacy and business management trainers in local language.

”Business owner is likely to prioritize the profit gain. Over the times, they ignore the discipline of following the business plan or proper financial planning which leads to unhealthy cashflow management, known as the business pulse. What I have learnt today is practically important and way beyond my self-research study,” said Sopheap, Managing Director and Founder of Akphiwatt Rental Solutions.

H.E. Dr. Chhieng Vanmunin, Chief Executive Officer of Khmer Enterprise mentioned that Khmer Enterprise serves as a national platform to support more Cambodian start-ups and SMEs to grow and scale. All programs are tailored to fit all stages of business from ideation to investment through entrepreneurial promotion, capacity upgrading, networking to seed funding. The collaboration with Sathapana bank on the IFL program will bring our mission closer by fulfilling the financial gap that best prepares Cambodian entrepreneurs for the next stage of business scaling and investment opportunities.

“Sathapana Bank fully supports IFL program which offers tremendous benefits, networking opportunity and in-depth financial knowledge to business owners. We believe that this training course is a good asset for women entrepreneurs to improve, grow and sustain their businesses with enhanced financial skill,” says Mr. Fung Kai Jin, Chief Executive Officer of Sathapana Bank.

Financial literacy allows business owners to make effective decisions with their investments, better manage their resources, and achieve their business goals. Therefore, Manulife is proud to support this program with our strategic partner Sathapana Bank, knowing this initiative will provide financial education to support the development of women entrepreneurs. This also aligns very well with our mission to build a better future for Cambodia. says Mr. Justin Helferich, CEO and General Manager, Manulife Cambodia.

“CGCC strongly supports women entrepreneurs for financial literacy to achieve financial inclusion. We believe that this training program can support women-owned SMEs on all levels of the business spectrum to be financially literate to improve and grow their businesses. This joint effort with Sathapana Bank, which is one of our most active partners in providing guaranteed loans to women-owned SMEs, and the other two sponsors, will provide more opportunities and support towards this segment of SMEs,” says Mr. Wong Keet Loong, Chief Executive Officer of CGCC.

The training course does not only provide practical business training and development but also networking opportunities to help Women in Business (WIB), SMEs and MSMEs better connected for future collaboration. For example, one SME owner who runs a cake shop has already been linked with the Coffee Shop owner during the training course.

Mrs. Gechhoung, Fy Long Electronic Store Owner and Sathapana Bank customer claimed that “If we do not have any fundamental financial knowledge, we just manage our business with no direction. Secondly, I also got to build good connections with many business owners though networking.”

The program is open from September 2022 to January 2023. All business owners are encouraged to register through this link: https://forms.office.com/r/dNausSrKxK or scan here.

Credit to: Khmer Times, Published on 14 October 2022