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CGCC's Bond Guarantee

CGCC’s Bond Guarantee Framework was approved by the Ministry of Economy and Finance on 17 May 2023. CGCC was accredited by the Securities and Exchange Regulator of Cambodia (SERC) as the bond guarantor on 22 August 2023. We were rated khAAA, the highest rating by the local rating scale, on 19 December 2023 and launched as the First Cambodian Bond Guarantor on 31 January 2024.

CGCC aims to provide guarantees on Khmer Riel denominated bonds listed on the Cambodia Securities Exchange (CSX) to support local companies raising funds and bond market development in Cambodia.

Benefits of Bond Guarantee​​

For bond market:

  • Encourage more bond issuances
  • Attract investors to invest in corporate bonds
  • Provide more investment alternatives or options to investors
  • Increase liquidity in bond market

For bond issuers:

  • Improve the credit rating of the guaranteed bond
  • Improve access to the bond market
  • Access to diversified sources of funding

For investor:

  • Provide more choices of investment
  • Provide protection against issuer’s default
  • Provide more confidence in bond investment

Bond Guarantee Scheme Features

Eligible Issuer

The issuer must meet the requirements as below:

  • Being a public limited company or permitted entity.
  • Having obtained the board of directors’ resolution on the public/private offering of debt securities in accordance with the resolution of the general shareholders’ meeting.
  • Having historical financial statements and/or consolidated historical financial statements for (at least) the latest 2 (two) financial years which are audited in accordance with the existing law and regulations enacted in the Kingdom of Cambodia.
  • Having strong corporate governance with a clear management structure.
  • Having obtained credit rating from a credit rating agency accredited by the SERC.

CGCC’s Bond Guarantee Application Process

  • Corporate Information (i.e. company profile, shareholder structure, shareholders, directors, committees, key managements, etc.)
  • Audited Financial Statement for the last 2 years at least
  • Bond Issuance Information (size, tenor, purpose, etc.)
  • List of Potential Investors
  • Issuer’s Corporate Governance (AML reports)
  • Issuer and Underwriter engagement letter
  • Other documents which may be required by CGCC as necessary
  • CGCC’s Bond Guarantee Application Form
  • Business plan/budget plan of issuer including cash flow projection
  • Constitutional documents (such as article of corporation, certificate of incorporation, patent, etc.)
  • Corporate approval (resolution/meeting minute of the board of directors and/or shareholders)
  • Regulatory approvals (valid licenses, permits, and all regulatory approvals/authorizations, Merger & Acquisition)
  • Reports: Commercial due diligence including from financial, operational and market perspective, legal due diligence including tax, insurance, litigation, environmental and social impact, credit rating, and property evaluations report, etc.)
  • Security documents (hypothec and/or pledge agreements, etc.)
  • Legal opinion issued to the guarantor on issuer
  • Agreement/contract with related parties for the bond issuance
  • Other documents which may be required as necessary

More Information