Credit Guarantee and Investment Facility (CGIF) holds its Annual Meeting of Contributors in Ha Noi 03/06/2024 09:25:00 226

Credit Guarantee and Investment Facility (CGIF) holds its Annual Meeting of Contributors in Ha Noi

On May 28, 2024, the Annual Meeting of Contributors of Credit Guarantee and Investment Facility, a trust fund of the Asian Development Bank (CGIF) was held at Sofitel Legend Metropole Hotel in Hanoi, under the chairmanship of Viet Nam Ministry of Finance.

CGIF was established in November 2010 within the framework of the Asian Bond Market Initiative (ABMI) under the ASEAN+3 Financial Cooperation Process, with a goal to develop and strengthen local currency (LCY) and regional bond markets.  Spearheaded by the ASEAN+3 Finance Ministers with the participation of the ASEAN member countries, the People’s Republic of China, Japan, Republic of Korea and the Asian Development Bank (ADB), CGIF began its operations in 2012. By the end of 2023, its authorized capital amounted to US$1,158,000,000.

CGIF provides guarantees to corporate bonds mainly in local currencies issued by creditworthy ASEAN+3 domiciled corporations. It aims to help these companies secure long-term financing, reduce their dependency on foreign currency borrowing, and address currency and maturity mismatches.

CGIF is rated by international and domestic credit rating agencies.

CGIF's guarantee allows companies to significantly improve the credit rating of issued bonds, thereby reducing costs and increasing liquidity for corporate bonds. CGIF's bond guarantee created many opportunities for corporations and companies in the ASEAN+3 region to diversify their sources of capital and improve access to the regional bond markets. As of 30 April 2024, the cumulative guaranteed amount reached USD3.322 billion since the initiation of guarantee operations in 2012, comprising the 73 bonds transactions issued by 49 corporations from 11 economies from the ASEAN+3.

As of date, CGIF has guaranteed 14 bonds in Viet Nam issued by corporations which includes VinGroup, Masan, and Mobile World. Through CGIF's guarantee, Viet Nam companies have more opportunities to expand and diversify their financial sources, mobilize capital from the local currency bond market, as well as access to regional bond markets. CGIF guaranteed bonds are also attractive options for local institutions seeking safe fixed income investments for their portfolios, thereby increasing the depth of the capital markets. CGIF remains active in areas of capital market education and furthering environment, social and climate agendas through various capital markets products it supports./.