The total proceeds supported by the guarantee will be on-lent to c. 1,300 low to middle income households primarily in rural areas and many self-employed individuals, seeking affordable home purchase and home improvement loans.
This is GuarantCo’s second transaction with First Finance, following the provision of a loan guarantee in 2022 for the same purpose. As a non-deposit taking microfinance institution, First Finance continues to require debt financing to support its growth and enhance its commercial terms to lenders by reducing its own borrowing costs.
First Finance was established in 2006 and received its licence from the National Bank of Cambodia in 2009, to address a significant lack of access to long-term formal financing in the market. It remains the only microfinance company today with this strategic focus on affordable housing. GuarantCo’s contingent credit solution aims to cater to this significantly underserved and financially disadvantaged segment by increasing access to longer-term mortgage products for the unbanked population in Cambodia.
It is anticipated that 90 per cent of end-users of this housing finance will be women to also address gender inequalities linked to financial security. This transaction will contribute towards progress against the UN’s Sustainable Development Goal 5 – Gender Equality, in addition to SDG 11 targeting Sustainable Cities and Communities.
The first loan is provided by the Tokyo branch of Korea Development Bank, which GuarantCo onboarded as a beneficiary in September 2025 for a transaction with TDB Mongolia. This second transaction with First Finance therefore benefits from replicability on two fronts, with lessons learned applied to achieve scalability.
Nishant Kumar, Managing Director, Asia Investments at GuarantCo, and Head of Coverage – Asia at PIDG said:
“First Finance has a crucial role to play in promoting financial inclusion and economic growth in Cambodia and we are happy to continue our partnership to support it in these aims. Against a backdrop of supportive policymaking, we hope this transaction inspires further development of Cambodia’s nascent capital market to deliver ever greater social impact over time.”
Senacheert Sim, CEO at First Finance, said:
“We are extremely pleased to deepen our partnership with GuarantCo, building on the success of our previous collaboration. We extend our sincere gratitude to GuarantCo for their continued trust and confidence in First Finance and in our pioneering work. As the only microfinance institution today with a strategic focus on affordable housing, we operate with an unwavering commitment to ethical, transparent, and client-centred financial service. This new payment default guarantee is crucial for supporting our growth, enabling us to responsibly extend long-term mortgage products to approximately 1,300 low to middle income households, advancing financial inclusion and bringing safety, security and stability to more lives in Cambodia.”
Lavan Thiru, Executive Director, Infrastructure Asia, said:
“Congratulations to GuarantCo and First Finance on reaching this important milestone. A second successful close underscores the viability and repeatability of this guarantee-based financing approach in supporting social infrastructure and its potential to scale across the region. Infrastructure Asia is pleased to have facilitated this collaboration, and we hope to catalyse more of such innovative financing solutions across Asia.”
