LOLC Cambodia Closes First CGCC-Guaranteed Bond, Oversubscribed at $20 Million

LOLC (Cambodia) Plc. has successfully completed its KHR 80 billion (equivalent to $20 million) bond issuance, marking the first corporate bond in Cambodia to carry a guarantee from the Credit Guarantee Corporation of Cambodia (CGCC). The offering was oversubscribed, with participation from major local financial institutions, underscoring a strong domestic institutional appetite for a listed instrument backed by Cambodia's khAAA-rated national guarantor. Yuanta Securities (Cambodia) Plc. (YSC) acted as the Lead Manager and Underwriter for the bonds, which will be listed on the Cambodia Securities Exchange (CSX). Transaction Summary A first for the market The transaction is the first to leverage CGCC’s bond guarantee framework since the Securities and Exchange Regulator of Cambodia (SERC) accredited CGCC as the country’s bond guarantor in January 2024, with a khAAA rating on the local scale. The structure enhances the bond's rating by substituting the guarantor's credit standing for that of the issuer, enabling institutional investors with internal credit thresholds to participate in the credit-enhanced debt instrument. For issuers, this provides a pathway to long-term local-currency funding alongside traditional bank borrowing. For LOLC, the issuance diversifies its funding base, which has historically relied on wholesale borrowing and customer deposits. The company has had previous issuances on the CSX. For Yuanta Securities (Cambodia), the deal marks another milestone in a run of firsts on the exchange, adding a domestically guaranteed structure to a mandate list that spans corporate, project, and sustainability bonds. Investors reflect confidence in LOLC Sok Voeun, Chief Executive Officer of LOLC (Cambodia) Plc., stated, "The response from investors reflects confidence in LOLC’s balance sheet and in the strength of the guarantee structure. The proceeds will support our provision of loans to eligible social and green projects, and the transaction gives us a durable local capital market funding channel alongside our existing financing sources." No Lida, Chief Executive Officer of CGCC, commented, "This first CGCC-guaranteed bond demonstrates what the CGCC Bond Guarantee Framework was built to do — widen the range of issuers that can access the bond market and give domestic institutional investors the credit comfort they need to participate. CGCC looks forward to supporting more businesses in raising capital through Cambodia’s bond market and contributing to its continued development." Han Kyung Tae, Managing Director of Yuanta Securities (Cambodia) Plc., added, "Bringing the first CGCC-guaranteed bond to the market required a close and dedicated coordination among relevant stakeholders including the regulator, the market operator, the guarantor, the issuer, and investors over an extended period. The oversubscription tells us there is real institutional appetite in Cambodia when the credit structure is right, and we expect this to become a repeatable template for issuers here." About LOLC (Cambodia) Plc. LOLC (Cambodia) Plc. is a leading microfinance deposit-taking institution licensed by the National Bank of Cambodia. With a nationwide network of 83 branches, LOLC serves over 316,000 active borrowers, and 805,000 depositors across the country. As of the end of 2025, the institution managed $1.59 billion in total assets, $1.37 billion in gross loans, and $1.02 billion in customer deposits. LOLC is owned 97% by LOLC Asia Private Limited, a subsidiary of LOLC Holding based in Singapore and 3.0% by TPC-ESOP, an employee-owned private limited company. About the Credit Guarantee Corporation of Cambodia (CGCC) CGCC is a state-owned enterprise established in 2020 under the technical and financial guidance of the Ministry of Economy and Finance, with a mandate to improve access to finance and support the growth of small and medium enterprises in Cambodia. Accredited by SERC as the country’s bond guarantor and rated khAAA on the local scale by the Rating Agency of Cambodia, CGCC launched as Cambodia’s first bond guarantor in January 2024. About Yuanta Securities (Cambodia) Plc. Yuanta Securities (Cambodia) Plc. is a licensed securities firm in Cambodia and part of the Yuanta Financial Holdings group. It provides underwriting, bond arranging and structuring, brokerage and M&A advisory services, and has led a majority of the corporate and project bond issuances listed on the CSX.