More than 9,500 SMEs benefit from CGCC-supported loans exceeding $500M

Economy and Industry

More than 9,500 SMEs benefit from CGCC-supported loans exceeding $500M The Credit Guarantee Corporation of Cambodia (CGCC) has significantly aided 9,556 businesses by facilitating loan guarantees exceeding $500 million since April 2021. Acting as a critical financial safety net, CGCC enables small and medium enterprises (SMEs) to obtain loans from participating financial institutions without needing high-value collateral. By the end of 2025, CGCC reported supporting these businesses with credit guarantees totaling $512.28 million. As of June, the outstanding guaranteed loan stood at $297 million. CGCC also provided $10 million in bond guarantees, with non-performing guarantees (NPG) at 7.7%. The distribution of guarantees indicates a strong preference for individual support, which comprises 53 percent ($275 million) of the total, followed by wholesale guarantees at 29 percent ($153 million) and portfolio guarantees making up the remaining portion. CEO No Lida highlighted the importance of credit guarantee mechanisms in assisting SMEs, allowing them to secure funding necessary for production expansion and operational growth, ultimately contributing to the country's economic development. (Source: Khmer Times)

US exports to Cambodia surge 96% following Cambodia's Zero-Tariff Policy on American Goods Casey Barnett, president of the American Chamber of Commerce in Cambodia, announced that following a new U.S.-Cambodia tariff agreement-where Cambodia imposed zero tariffs on American goods-U.S. exports to Cambodia surged by 96%, with 54 product categories seeing increases. This change, initiated to reduce Cambodian tariffs up to 49%, has notably expanded U.S. exports, particularly in refined petroleum, vehicles, and various food products. However, in 2024, while Cambodia exported $7 billion worth of goods to the U.S., it only imported $300 million, highlighting issues related to Cambodian purchasing power and regulatory barriers. The trade agreement also mandates Cambodia to enhance governance, including establishing an independent labor court and reducing public service fees, ultimately benefiting Cambodia significantly. (Source: Khmer Times)

Svay Rieng to welcome another tyre manufacturing plant by Chinese firm Triangle Tyre Co Ltd plans to invest $462 million in Cambodia's Svay Rieng province to build a high-efficiency radial tyre production facility, aiming for an annual output of seven million tyres. This initiative includes six million half-steel and one million full-steel tyres. Construction starts in March, with the project wholly owned by Triangle Tyre. The factory will reduce raw material transportation costs and enhance efficiency, contributing to a projected tyre production of 31 million units by 2025, yielding an export value of approximately $1.38 billion. The investment, part of China's Belt and Road Initiative, is expected to create about 1,000 jobs and generate annual revenues of RMB 2.58 billion with a 15.1% return rate. This reflects increasing investor confidence in Cambodia under Prime Minister Hun Manet's administration, bolstered by favorable investment conditions. Chinese firms are expanding their presence in Cambodia to leverage investment policies and mitigate international trade challenges. (Source: Khmer Times)

Corporate News

Daun Penh Agrico lists $49M bond on CSX to transform Ratanakkiri into export hub Ratanakkiri-based Daun Penh Agrico Co Ltd, a subsidiary of THACO Agri, has successfully raised $49 million through a bond sale to develop 7,376 hectares for fruit production aimed at transforming the region into a global export hub for bananas, mangoes, and pineapples. The bonds, which were fully subscribed by local insurance companies and a bank, have a 5.25% coupon rate and will mature in eight years. This marks a significant development for the Cambodia Securities Exchange, diversifying into agriculture and showcasing its potential for institutional investment. Daun Penh plans to scale production to 272,000 tonnes by 2029, with future bond issuances planned to complete a total $100 million debt package. The initiative is a part of a larger strategy to enhance Cambodia's agricultural productivity through innovative and sustainable practices. (Source: Kiripost)

Stock Market

CSX index edges higher as ABC leads mixed trading The CSX Index inched up 0.13% to 424.4, with trading volume of 101,213 shares and market capitalization at KHR 11,726 billion. Main Board performance was mixed, led by a 1.10% gain in ABC, while PWSA and PPAP advanced, PEPC fell 1.79%, and several stocks closed flat. On the Growth Board, sentiment was muted as DBDE and JSL ended unchanged. (Source: YSC Research)

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