People
The total proceeds supported by the second 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.
| Company | PIDG |
| Sector | Social infrastructure |
| Country | Cambodia |
| Total Project Cost | USD 16 million |
| PIDG Commitment |
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| Dates of PIDG involvement |
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Cambodia has a significant affordable housing supply gap. This is compounded by the country’s large financially under-served population with little or no access to finance. Longer-term mortgage products are unavailable to the unbanked population, leaving low-middle-income households with no viable route to home ownership.
PIDG provided a 100 per cent payment default guarantee of up to USD 16 million to First Finance, a microfinance institution in Cambodia. The guarantee will mobilise a series of long-term debt facilities for First Finance, including the first close in November 2025 of a USD 5 million guaranteed loan.
This followed the provision of an earlier guarantee of up to USD 15 million to fulfil the same purpose.
First Finance was established in 2006 to address a significant lack of access to long-term formal financing in the market. It remains the only microfinance company in the country today with this strategic focus on affordable housing. PIDG’s contingent credit solution, provided through GuarantCo, aims to cater to this financially disadvantaged segment by increasing access to longer-term mortgage products.
The total proceeds supported by the second 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.
It is anticipated that 90 per cent of end-users of this housing finance will be women, addressing gender inequalities linked to financial security.
The guarantee will mobilise a series of long-term debt facilities for First Finance, including the first close in November of a USD 5 million guaranteed loan. This is PIDG’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.
