World Bank-backed credit initiative boosts responsible business and financial inclusion in Cambodia. ESG BROADCAST shares key takeaways.
Regulatory Extract:
Cambodia is set to make a significant leap in closing its gender finance gap, as the Multilateral Investment Guarantee Agency (MIGA), part of the World Bank Group, issued a $300 million guarantee to the National Bank of Canada (NBC) for its investment in Advanced Bank Asia Limited (ABA). This guarantee, part of MIGA’s Guarantee Platform, will enable new loans amounting to $576.9 million, with a targeted focus on women-owned small and medium enterprises (WSMEs) and retail lending for women.
The funding marks a major stride toward addressing the country’s $5.2 billion SME financing gap which equivalent to 22% of its GDP and aligns with the World Bank Group’s FY25–29 Country Partnership Framework for Cambodia. The guarantee frees up capital at NBC’s parent level, allowing ABA to deploy these funds in Cambodia, with $566.9 million dedicated to women-owned SMEs and $10 million for women’s retail loans.
“This project not only supports the growth of WSMEs but also enhances financial inclusion and economic resilience in Cambodia,” said Hiroshi Matano, Executive Vice President of MIGA. “We aim to contribute to the sustainable development of the country by fostering an environment where women entrepreneurs can thrive and drive economic progress.”
The initiative builds upon a prior $300 million MIGA guarantee and is designed to increase lending capacity over a three-year period. The effort underscores a shift in Cambodia’s financial sector strategy, encouraging diversification away from real estate and construction—which have seen declining credit demand—and toward more inclusive, gender-sensitive economic development.
ABA, as the on-ground implementer, will significantly expand its lending portfolio for WSMEs under the initiative. This move is expected to stabilize and boost the SME sector by proving the creditworthiness and investment viability of women-owned businesses, which have traditionally been perceived as high-risk borrowers due to structural and societal barriers.
Bill Bonnell, Executive Vice-President of National Bank of Canada, welcomed the development, stating, “Women-owned small and medium enterprises play a critical role in the Cambodian economy. The MIGA guarantee will help ABA sustain their continued growth in Cambodia.”
In addition to financial capital, the initiative includes a Gender Action Plan to enhance ABA’s capacity to serve female borrowers effectively. This includes training, institutional knowledge development, and fostering a culture of gender equity within the bank’s operations.
Strategic significance lies in this initiative’s potential to reshape Cambodia’s financial inclusion landscape by addressing systemic credit disparities and advancing responsible business practices. With backing from the World Bank Group, the program offers a replicable model for other emerging markets seeking to empower women entrepreneurs while ensuring financial stability and sustainable growth.
ESG BROADCAST will continue monitoring the updates related to this topic. Stay tuned to be updated on the related policy and pivotal regulatory shift.
