Cambodia Investment Review

SERC and CGCC Sign MoU to Promote Guaranteed Bonds in Cambodia

SERC and CGCC Sign MoU to Promote Guaranteed Bonds in Cambodia

Cambodia

The Securities and Exchange Regulator of Cambodia (SERC) and the Credit Guarantee Corporation of Cambodia (CGCC) have signed an MoU. The agreement, aimed at promoting the development and issuance of guaranteed bonds in the country, was signed at the Non-Bank Financial Services Authority (FSA) Building under the auspices of H.E. Dr. Aun Pornmoniroth, Deputy Prime Minister, Minister of Economy and Finance, and Chairman of the FSA.

The signing ceremony was attended by senior officials, including H.E. Sou Socheat, Delegate of the Royal Government in Charge as Director General of SERC, and Mr. Wong Keet Loong, Chief Executive Officer of CGCC. The event was presided over by H.E. Ros Seilava, Secretary of State of the Ministry of Economy and Finance, Chairman of CGCC, and Vice Chairman of the Board of the FSA.

Support The Growth Of The Securities Sector In Cambodia

This MoU marks a collaborative effort to support the growth of the securities sector in Cambodia, particularly through the issuance of guaranteed bonds. These bonds, including green bonds, social bonds, sustainability-linked bonds, and sustainability bonds, will be guaranteed by local institutions to enhance confidence among investors. The guarantee mechanism is designed to mitigate the risks associated with bond issuance, thereby encouraging more companies and financial institutions to raise capital through this avenue.

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H.E. Sou Socheat emphasized the significance of the agreement, stating, “Through today’s MoU, it will attract more companies, including SMEs, to seek financing through the securities market, and will also provide additional benefits for listed companies having demands for additional sources of financing in the form of bond issuance or other forms of debt, with the opportunities to obtain guarantee with special rate.”

Mr. Wong Keet Loong highlighted CGCC’s role in this initiative, noting, “As the first and only bond guarantee institution in Cambodia, CGCC will play a key role in developing the growth of bond issuance listed on the Cambodia Securities Exchange (CSX). The credit rating of CGCC at khAAA will enhance the credit rating of the issuer thus giving added confidence to bond investors. This MoU with SERC is strategic to develop and work towards enhancing the securities framework to promote higher bond issuance to raise funding and attract more domestic and foreign investors.”

CGCC To Be The Leading Bond Guarantee Institution In Cambodia

H.E. Ros Seilava added that this collaboration would have a far-reaching impact on the development of the bond market in Cambodia, stating, “This MoU will enable both parties to achieve the shared goal in terms of mutually supporting SERC for the development of the bond market, and CGCC to be the leading bond guarantee institution in Cambodia for improving financial inclusion and developing SMEs in Cambodia. At the same time, this cooperation will bring a positive impact on the bond market in Cambodia by encouraging the issuance and investment of more bonds, including green bonds, social bonds, and sustainable bonds.”

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The MoU signing was followed by a workshop titled “Benefits and Opportunities of Issuing Guaranteed Bonds in Cambodia.” The workshop aimed to raise awareness among small and medium enterprises (SMEs) and related institutions about the opportunities and benefits of issuing guaranteed bonds. It also provided insights into the requirements for obtaining guarantees for bonds, facilitating better understanding and participation in the bond market.

The event attracted a broad range of participants, including senior representatives from the General Secretariat of the FSA, regulators under the FSA, the Cambodia Securities Exchange (CSX), the Cambodia Association of Securities Firms, the Cambodia Chamber of Commerce, the Young Entrepreneurs Association of Cambodia, the Association of Banks in Cambodia, the Rating Agency of Cambodia Plc., and various listed companies. A total of 100 participants attended the event, which featured expert speakers from SERC, CGCC, Telcotech LTD., Royal Group Securities Plc., and Prudential (Cambodia) Life Assurance Plc.

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