Cambodia Investment Review
Cambodia’s efforts to expand financing options for businesses gained fresh support as the Credit Guarantee Corporation of Cambodia (CGCC) and Credit Guarantee and Investment Facility (CGIF) signed a strategic collaboration agreement focused on bond market development.
The agreement establishes a framework for joint market development initiatives and knowledge sharing, with an emphasis on strengthening Cambodia’s riel-denominated bond market and cooperation across ASEAN.
It was signed during the “Cambodia’s Investment Horizon Seminar: Seizing Investment Opportunities and Unlocking Capital through the Bond Markets,” jointly organised by CGCC, CGIF, the Securities and Exchange Regulator of Cambodia (SERC), and the Cambodia Chamber of Commerce (CCC).
The September 30 event brought together approximately 100 participants, including representatives from regulators, investors, issuers and financial institutions. Discussions focused on guaranteed bond issuance, investment opportunities and financing structures that could support private sector expansion and infrastructure development.
Broadening financing beyond banks
H.E. Sou Socheat, Delegate of the Royal Government in charge as Director General of SERC, said Cambodia would need a broader financial system to support its ambitions of becoming an upper-middle-income country by 2030 and a high-income country by 2050.
“To achieve the national goals of the Kingdom of Cambodia of becoming an upper-middle-income country by 2030 and a high-income country by 2050, reliance solely on the traditional banking system is not sufficient,” he said.
Sou Socheat described capital and bond markets as financial bridges connecting the government’s long-term development plans with private sector implementation.
He pointed to the Cambodia Securities Sector Development Strategy 2025–2035 and supporting regulations as measures intended to facilitate that transition. Credit guarantee institutions such as CGCC and CGIF could help reduce investment risks and mobilise private capital for infrastructure and sustainable development, he added.
The seminar highlighted three financing priorities:
- Riel-denominated bonds: Expanding local currency funding options for Cambodian businesses.
- Credit guarantees: Strengthening investor confidence and supporting access to bond financing.
- Thematic bonds: Exploring green, blue and sustainability-linked structures for infrastructure and development projects.
Businesses seek capital while retaining ownership
Neak Oknha Kith Meng, President of the Cambodia Chamber of Commerce and Chair of ASEAN Business Advisory Council Cambodia, said local currency bond markets could help domestic enterprises fund supply chain expansion and green infrastructure while retaining ownership and management control.
“Developing local currency bond markets offers an optimal path for domestic enterprises to raise capital for supply chain expansion and green infrastructure without diluting corporate ownership or management control,” he said.
Unlike an equity issuance, borrowing through bonds does not require a company to sell an ownership stake. Issuers do, however, take on obligations to pay interest and repay principal under the terms of the bond.
Kith Meng also linked the expansion of sovereign and corporate bond markets to greater local currency use, the management of foreign exchange risks and national economic sovereignty.
For businesses, the relevance of local currency financing depends partly on how closely it matches their revenue streams. Borrowing in the same currency in which a company earns revenue can reduce exposure to exchange rate movements.
Guarantee partnership aims to strengthen investor confidence
CGIF Chief Executive Officer Ms. Noriko Nasu said the seminar was the facility’s first organised bond market event in Cambodia.
“Deepening the Cambodian Riel bond market is a vital anchor for financial stability and private sector growth, and we remain dedicated to expanding sustainable financing solutions across the country,” she said.
CGCC Chief Executive Officer Mr. No Lida said bond guarantees offered an opportunity to extend credit enhancement beyond traditional lending and help Cambodian enterprises access capital market financing.
“Our strategic partnership with CGIF combines strong regional expertise with CGCC’s deep understanding of the local market,” he said.
No Lida added that the collaboration was intended to strengthen investor confidence, broaden financing options for Cambodian businesses and support sustainable capital market development.
Mr. Nhim Soriya, Director of CGCC’s Finance and Business Analytics Department, attended the seminar as No Lida’s representative.
The agreement sets out a cooperation framework, although the announcement did not specify individual bond transactions, financing commitments or a timetable for new issuances.
Linking Cambodia with regional bond market expertise
CGCC is a state-owned enterprise established in September 2020 under the financial and technical guidance of Cambodia’s Ministry of Economy and Finance. Its services include loan guarantees, bond guarantees and capacity building for small and medium-sized enterprises.
According to CGCC, it had provided guarantees covering 10,623 accounts, with a total amount of $610.66 million, as of the end of August 2026.
CGIF was established by ASEAN members, China, Japan, South Korea and the Asian Development Bank. Structured as an ADB trust fund, it has paid-in capital of $1.158 billion and began guarantee operations in May 2012.
The facility forms part of the Asian Bond Markets Initiative, which seeks to develop local currency and regional bond markets across ASEAN+3.
For Cambodia, the partnership brings regional guarantee expertise into a domestic effort to diversify business funding. Its practical impact will depend on whether that cooperation translates into bond issuances that attract investors and provide viable financing for local enterprises.
