First Finance


December 2022


Social infrastructure


GuarantCo provides First Finance with a loan guarantee to finance affordable housing in Cambodia

First Finance

Transaction benefits

GuarantCo and Cargill Financial Services International have provided a c. USD 7 million debt financing solution to First Finance, a Cambodian micro finance institution, to provide affordable housing finance to low- and middle-income households in the country. Subject to certain criteria including market conditions, the overall size of the facility could rise to c. USD 22 million over next two years.


This is GuarantCo’s first transaction in Cambodia and marks the debut social loan in Cambodia. First Finance has committed to ensuring the use of proceeds will be administered in line with its Social Financing Framework based on the Loan Market Association’s Social Loan Principles on which Moody’s provided a Second Party Opinion (SPO).

Development benefits

The transaction is expected to support around 470 new loans targeted mainly to low- and middle-income households. It will enable First Finance to access their first-ever longer-term financing with a 7-year tenor, on a scale and at a lower cost of funding than would otherwise have been the case without GuarantCo’s involvement.


First Finance is the only microfinance institution in Cambodia that is dedicated solely to providing long-term mortgages to low- and middle-income households for affordable home purchases. GuarantCo’s contingent credit solution aims to cater to this significantly under-served and under-penetrated segment thereby helping with longer-term mortgage products to the unbanked population in Cambodia.


Aligned with Sustainable Development Goal 11 (Make cities and human settlements inclusive, safe, resilient and sustainable), this transaction will support access to safe, adequate and affordable housing in Cambodia. Moreover, women accounted for over 60 percent of loan recipients from First Finance’s portfolio in 2022 and a similar pattern is expected through this transaction which seeks to empower women and provide more opportunities for them.