Bond Guarantee Scheme
CGCC’s Bond Guarantee was approved by the Ministry of Economy and Finance. On 31 January 2024, CGCC launched as the First Cambodian Bond Guarantor after being accredited by the Securities and Exchange Regulator of Cambodia on 22 August 2023 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 guarantee on local corporate bond issuances on the Cambodia Securities Exchange (CSX) to support local companies raising funding and the development of securities sector in Cambodia.
Benefit of CGCC's Bond Guarantee
For capital market
- Encourage more bond issuances
- Attract investors to invest in corporate bonds
- Provide more investment alternatives or options to investors
- Increase liquidity of Khmer Riel (KHR) from the bond issuance.
For bond issuer
- Improve the credit rating of the issuer
- Improve access to the capital market
- Diversify sources of funding
For investor
- More choices of investment
- Protection against issuer’s default
- More confidence in bond investment
Bond Guarantee Structure
Claim Payment Structure
*The above structure are simplified for understanding only. The structure of the actual case may vary.
Bond Guarantee Scheme Features
Eligible Issuers
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 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.
Bond Guarantee Application Process
- Corporate Information (i.e. company profile, shareholder structure, shareholders, directors, committees, key managements, etc.)
- Financial Statement at least last 2 years
- Bond Issuance Information (size, tenure, 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, M&A)
- Report (due diligence reports, legal, audited financial statements, tax, insurance, litigation, environmental and social impact, credit rating, property evaluations report, etc.)
- Security documents (if applicable) (hypothec and/or pledge agreements, etc.)
- Legal opinion issued to the guarantor and issuer bond conditions (amount, currency, maturity date, etc.)
- Agreement/contract with related parties for the bond issuance
- Other documents which may be required by CGCC as necessary
Claim Process
