GuarantCo provides guarantee to support affordable housing finance in Cambodia by First Finance

  • Date written
  • December, 2025

GuarantCo, part of the Private Infrastructure Development Group (PIDG), is to provide a payment default guarantee of up to USD 16 million to First Finance, a microfinance institution in Cambodia. The guarantee will mobilise a series of long-term debt facilities for First Finance, including the first close of a USD 5 million guaranteed loan this month.

The total proceeds supported by the guarantee will be on-lent to c. 1,300 low to middle income households primarily in rural areas and many self-employed individuals, seeking affordable home purchase and home improvement loans.

This is GuarantCo’s second transaction with First Finance, following the provision of a loan guarantee in 2022 for the same purpose. As a non-deposit taking microfinance institution, First Finance continues to require debt financing to support its growth and enhance its commercial terms to lenders by reducing its own borrowing costs.

First Finance was established in 2006 and received its licence from the National Bank of Cambodia in 2009, to address a significant lack of access to long-term formal financing in the market. It remains the only microfinance company today with this strategic focus on affordable housing. GuarantCo’s contingent credit solution aims to cater to this significantly underserved and financially disadvantaged segment by increasing access to longer-term mortgage products for the unbanked population in Cambodia.

It is anticipated that 90 per cent of end-users of this housing finance will be women to also address gender inequalities linked to financial security. This transaction will contribute towards progress against the UN’s Sustainable Development Goal 5 – Gender Equality, in addition to SDG 11 targeting Sustainable Cities and Communities.

The first loan is provided by the Tokyo branch of Korea Development Bank, which GuarantCo onboarded as a beneficiary in September 2025 for a transaction with TDB Mongolia. This second transaction with First Finance therefore benefits from replicability on two fronts, with lessons learned applied to achieve scalability.

Nishant Kumar, Managing Director, Asia Investments at GuarantCo, and Head of Coverage – Asia at PIDG said:

“First Finance has a crucial role to play in promoting financial inclusion and economic growth in Cambodia and we are happy to continue our partnership to support it in these aims. Against a backdrop of supportive policymaking, we hope this transaction inspires further development of Cambodia’s nascent capital market to deliver ever greater social impact over time.”

Senacheert Sim, CEO at First Finance, said:

“We are extremely pleased to deepen our partnership with GuarantCo, building on the success of our previous collaboration. We extend our sincere gratitude to GuarantCo for their continued trust and confidence in First Finance and in our pioneering work. As the only microfinance institution today with a strategic focus on affordable housing, we operate with an unwavering commitment to ethical, transparent, and client-centred financial service. This new payment default guarantee is crucial for supporting our growth, enabling us to responsibly extend long-term mortgage products to approximately 1,300 low to middle income households, advancing financial inclusion and bringing safety, security and stability to more lives in Cambodia.” 

Lavan Thiru, Executive Director, Infrastructure Asia, said:

“Congratulations to GuarantCo and First Finance on reaching this important milestone. A second successful close underscores the viability and repeatability of this guarantee-based financing approach in supporting social infrastructure and its potential to scale across the region. Infrastructure Asia is pleased to have facilitated this collaboration, and we hope to catalyse more of such innovative financing solutions across Asia.”

NOTES TO EDITORS

About GuarantCo

GuarantCo mobilises private sector local currency investment for infrastructure projects and supports the development of financial markets in lower income countries across Africa and Asia. GuarantCo is part of the Private Infrastructure Development Group (PIDG) and is funded by the governments of the United Kingdom, Switzerland, Australia and Sweden, through the PIDG Trust, the Netherlands, through FMO and the PIDG Trust, and Global Affairs Canada plus France through a stand-by facility. GuarantCo is rated AA- by Fitch and A1 by Moody’s. Since 2005, GuarantCo has enabled USD 7.1 billion of total investment and USD 6.8 billion of private sector investment, giving 44.8 million people improved access to infrastructure and creating around 248,000 jobs. GuarantCo’s activities are managed by GuarantCo Management Company which is part of Cardano Development. www.guarantco.com

About PIDG

The Private Infrastructure Development Group (PIDG) is an innovative infrastructure project developer and investor which mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and south and southeast Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). PIDG delivers its ambition in line with its values of pioneering, partnership, safety, inclusivity, and urgency.

 

PIDG offers technical assistance for upstream, early-stage activities and concessional capital; invests in early-stage project development and project and corporate equity through its project development solution, InfraCo; its debt solution EAAIF (the Emerging Africa & Asia Infrastructure Fund) is one of the first and more successful blended debt funds in low-income markets; and its guarantees solution, GuarantCo, provides credit enhancement and local currency solutions to de-risk projects. PIDG also supports a growing portfolio of local credit enhancement facilities, which unlock domestic institutional capital for infrastructure financing.

 

Since 2002, PIDG has supported 258 infrastructure projects to financial close, which provided an estimated 232 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia and Sweden, and Global Affairs Canada. www.pidg.org

About First Finance

First Finance Plc stands as the pioneering microfinance institution in Cambodia, specializing in the provision of micro-housing loans tailored for low- and middle-income Cambodians. This strategic focus allows the company to effectively bridge a critical market gap, as traditional commercial banks primarily cater to the nation’s wealthier segments. By extending its services to those typically excluded from formal housing financial services, First Finance Plc plays a crucial role in advancing financial inclusion and significantly expanding access to affordable, quality housing for a broader demographic.

 

The institution operates with an unwavering commitment to ethical, transparent, and client-centered financial service. This dedication to responsibility has been externally validated by the awarding of the Gold Client Protection Certification for the second consecutive term, with First Finance earning an exceptional 99.1% score.

 

Since its establishment in 2006 and licensing in 2009, First Finance has made a significant social impact by providing affordable housing loans to over 16,000 households. This initiative has positively transformed the lives of more than 60,000 individuals, ensuring they live with safety, security, stability, and dignity. https://www.firstfinance.com.kh

About Infrastructure Asia

Infrastructure Asia is a project facilitation office established by the Singapore Government (set up by Enterprise Singapore and the Monetary Authority of Singapore) to support Asia’s social and economic growth through sustainable infrastructure development. We are committed to developing a robust pipeline of bankable projects and investment opportunities by working closely with regional governments, private companies and both commercial and multilateral development banks.

For more information, visit www.infrastructureasia.org