Cambodia Investment Review
Royal Group Securities (RGS) and the Credit Guarantee Corporation of Cambodia (CGCC) have formalized a strategic partnership through the signing of a Memorandum of Understanding (MoU). This collaboration is set to play a crucial role in the advancement of Cambodia’s capital market, with RGS, a leading securities firm, committing to assist CGCC, the nation’s first state-owned bond guarantor, in offering bond guarantee services aimed at supporting local enterprises.
The MoU marks a significant commitment by both RGS and CGCC to work together in enhancing the growth and sustainability of Cambodia’s capital market. The partnership will see RGS providing support to CGCC in its objective to facilitate access to finance for local businesses, thereby aiding in their expansion efforts and contributing to economic development.
Improving The Process Of Raising Capital Through Bond Guarantees
Mr. Seng Chan Thoeun, CEO of RGS, articulated the partnership’s objectives, emphasizing the collaboration’s role in improving the process of raising capital through bond guarantees within the Cambodian market. Mr. Thoeun stated, “Our partnership with CGCC is aimed at enhancing the Cambodian capital market’s capabilities through bond guarantee services. This collaboration is expected to support local businesses by providing more assured bond offerings, thereby bolstering investor confidence and market participation.”
Echoing the sentiment, Mr. Wong Keet Loong, CEO of CGCC, outlined the benefits of the partnership from CGCC’s perspective. He noted the significance of CGCC’s role, accredited by the Securities and Exchange Regulator of Cambodia (SERC), in guaranteeing corporate bonds listed on the Cambodia Securities Exchange (CSX).
“Our collaboration with RGS will enhance the structuring of bonds and the credit rating of bond issuances, leading to increased investor confidence. As a state-owned enterprise under the Ministry of Economy and Finance, our efforts are in line with SERC’s objectives to develop the capital market and attract both local and foreign institutional investors,” Mr. Loong said.
Better Corporate Governance And Assisting With Growth Strategies
The collaboration between RGS and CGCC is anticipated to offer numerous benefits, including mitigating investment risks, widening the investor base, and encouraging local companies to diversify their funding sources. This initiative is also expected to lead to better corporate governance and assist companies in their growth strategies, thereby contributing to job creation and economic progress.
Royal Group Securities: RGS is a fully licensed securities firm regulated by the Securities and Exchange Regulator of Cambodia, offering a broad spectrum of financial services, including capital raising, mergers and acquisitions, and capital restructuring. The firm played a key role in 2023, facilitating over USD 100 million in funding for local businesses through initial public offerings (IPOs), bonds, and loans.
Credit Guarantee Corporation of Cambodia: CGCC, the only credit guarantee corporation in Cambodia, was established as a state-owned enterprise to improve financial inclusion and support the growth of small and medium-sized enterprises (SMEs) in Cambodia. It operates under the technical and financial guidance of the Ministry of Economy and Finance.
