GuarantCo and the Credit Guarantee Corporation of Cambodia (CGCC) have signed a Framework Agreement as part of the Private Infrastructure Development Group’s Credit Enhancement Facility initiative.

The Framework was signed alongside the first transaction between GuarantCo and CGCC, in which GuarantCo has provided a 10-year, USD 7 million portfolio guarantee to CGCC.

Marking GuarantCo’s fourth investment in Cambodia, the portfolio guarantee will allow CGCC to mobilise further bank lending towards small and medium-sized enterprises in the country, with a focus on businesses supporting the green transition. SME development is a high priority for Cambodia where a lack of access to formal banking services is common due to the nascency of green financing in the country.

The Credit Enhancement Facility initiative seeks to accelerate the development of domestic capital markets and enhance financial inclusion through developing onshore guarantee capability.

This  Framework Agreement will encompass counter- and co-guarantee support and technical assistance to help boost CGCC’s capacity through its involvement in a range of large-scale Corporate and Project finance deals. There will be a particular focus on catalysing sustainable infrastructure financing via the capital markets in Cambodia.

The Framework Agreement is also aligned with the mandate and prioritisation from the Ministry of Economy and Finance, and the Securities and Exchange Regulator of Cambodia who are seeking to deepen the corporate and project bond market in Cambodia.