Phnom Penh (FN), Nov. 29 – Canadia Bank, a leading local commercial bank in Cambodia and the recipient of the Best SME Bank 2024 award by The Digital Banker, has entered into a strategic partnership with Canadia Securities Co., Ltd. and the Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ). The collaboration, formalized through a Memorandum of Understanding (MoU), focuses on driving the growth and resilience of Small and Medium Enterprises (SMEs) in Siem Reap, Banteay Meanchey, and Battambang.
This initiative brings together Canadia Bank’s extensive financial expertise, Canadia Securities’ capital market knowledge, and GIZ’s developmental focus. With over 14 years of experience in Cambodia, Canadia Securities offers critical services such as underwriting, financial advisory, brokerage, and bondholder representative, enabling SMEs and investors to explore domestic capital market opportunities. GIZ, operating on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), complements these efforts through its Improved Competitiveness of National Enterprises (ICONE) program. Launched in April 2022, the ICONE program provides technical and soft skills training, promotes innovative digital solutions, and fosters sustainable management practices to enhance SME competitiveness in Cambodia.
The MoU signing ceremony, held in Siem Reap, was attended by Ms. Song Khenglay, Executive Vice President and Chief Operating Officer of Canadia Bank; Mr. Thai Nha, Chief Executive Officer of Canadia Securities; and Dr. Stefan Hanselmann, ICONE Program Director and Cluster Coordinator for Private Sector Development at GIZ.
This partnership underscores Canadia Bank and Canadia Securities’ dedication to supporting SMEs by offering tailored financing options with flexible requirements, promoting financial literacy, and enhancing access to capital markets. SMEs will benefit from a range of capacity-building initiatives, including business consultations, investment strategy sessions, and financial literacy workshops across the three provinces.
Canadia Bank has consistently championed SME development through various initiatives, including collaborations with the Young Entrepreneurs Association of Cambodia (YEAC), the Cambodia Women Entrepreneurs Association (CWEA), and the Federation of Associations for SMEs of Cambodia (FASMEC). Its innovative financing programs include the SME Smart Lady+, targeting female entrepreneurs; the Green Financing Program for eco-friendly ventures; guaranteed loans through the Credit Guarantee Corporation of Cambodia (CGCC) for businesses lacking collateral; and the Rice Export Guarantee Scheme for rice millers and exporters. These programs are supported by advanced digital payment solutions that streamline business operations.
Mr. Raymond Sia, CEO and Executive Board Director of Canadia Bank and Chairman of Canadia Securities, highlighted the partnership’s significance: “This strategic collaboration signals a united effort to enhance SME growth, competitiveness, and access to financial resources in Cambodia’s provinces, paving the way for long-term economic development. Together with GIZ’s ICONE Program, we aim to unlock the potential of SMEs in the provinces by equipping them with accessible financing, strategic advisory services, and knowledge-building initiatives.”
Ms. Song Khenglay, Canadia Bank’s EVP and Chief Operating Officer, emphasized the need to address challenges faced by provincial SMEs: “High borrowing costs, collateral requirements, and limited financial literacy are key barriers for SMEs in provinces. With our expertise in serving SMEs, this partnership delivers not only financial support but also provides knowledge of financial literacy, guidance on preparing for and accessing the right financing solutions, and strategies for sustainable growth, effective management, and business expansion.”
Echoing this vision, Mr. Thai Nha, CEO of Canadia Securities, spoke on the importance of expanding access to capital markets: “For many SMEs, navigating the complexities of capital markets is a daunting task. By combining Canadia Bank’s financial capabilities with Canadia Securities’ advisory expertise, we aim to empower GIZ members with the tools and strategies needed to gain access to capital market and explore alternative funding options, such as IPOs and bond issuance, enabling them to scale their businesses successfully.”
Dr. Stefan Hanselmann, Director of the GIZ ICONE program, also stressed the importance of financial health in driving success. “The financial health of companies is the lifeline of their success, influencing every aspect of their operations. It is also the area most in need of improvement for businesses to survive and thrive in the northwest of Cambodia. Through our collaboration with Canadia Bank and Canadia Securities, we aim to provide companies with a clear pathway to enhance their financial health and secure access to vital financing.”
=FRESH NEWS
