Credit Guarantee and Investment Facility (CGIF) was established by the ten members of the Association of Southeast Asian Nations (ASEAN) together with the People's Republic of China, Japan, Republic of Korea (ASEAN+3) and Asian Development Bank (ADB).

CGIF is a key component of the Asian Bond Markets Initiative (ABMI) of the ASEAN+3 cooperation. It has been established to promote economic development, stability and resilience of financial markets in the region. The main function of CGIF is to provide credit guarantees for local currency denominated bonds issued by investment grade companies in ASEAN+3 countries.

Latest Press Release

CGIF guarantees REE Corporation’s inaugural VND2.318 trillion fixed rate bonds, arranged by Standard Chartered Vietnam 29 January 2019
CGIF supports Myanmar’s Yoma Strategic to issue landmark Thai Baht bonds 25 January 2019
CGIF revised Environmental and Social Safeguards 27 December 2018

Catalyzing More Stable and Efficient Mobilization of Asian Savings in the Region

ABOUT US

The CGIF was established in November 2010 to promote financial stability and to boost long-term investment in the ASEAN+3 region (the "Region")^a. CGIF will provide guarantees on local currency denominated bonds issued by corporations in the Region. Such guarantees will make it easier for corporations to issue local currency bonds with longer maturities. This will help reduce the currency and maturity mismatches that caused the 1997-1998 Asian financial crisis and make the Region's financial system more resilient to volatile global capital flows and external shocks.

The aim of CGIF is to help companies that otherwise would have difficulty tapping local bond markets to secure longer-term financing, reduce their dependency on short-term foreign currency borrowing to mitigate currency and maturity mismatches. Increased issuances of local currency bonds will promote financial stability in the Region and aid the development of ASEAN's bond markets.

CGIF will provide guarantees for local currency denominated bonds issued by investment grade corporations in the Region. CGIF had received capital contributions of USD700 million from ASEAN, the People's Republic of China, Japan, the Republic of Korea and ADB.

Please click the link to download CGIF's Articles of Agreement:

CGIF's Articles of Agreement

^a The ASEAN member countries are: (i) Brunei Darussalam, (ii) Cambodia, (iii) Indonesia, (iv) Lao People's Democratic Republic, (v) Malaysia, (vi) Republic of the Union of Myanmar, (vii) Philippines, (viii) Singapore, (ix) Thailand and (x) Viet Nam. "ASEAN+3" refers to the ASEAN countries and (i) People's Republic of China, (ii) Japan, and (iii) Republic of Korea.

The Meeting of Contributors is the highest decision-making organ of CGIF. Specific powers of the Meeting of Contributors are stated in the Articles of Agreement of CGIF. The Meeting of Contributors formally meets within five months after the end of each Fiscal Year.

CGIF Contributors	Contribution (USD)
People's Republic of China	200,000,000
Japan (Japan Bank for International Cooperation)	342,800,000
Republic of Korea	100,000,000
Brunei Darussalam	5,600,000
Cambodia	200,000
Indonesia	12,600,000
Lao People's Democratic Republic	100,000
Malaysia	12,600,000
Republic of the Union of Myanmar	100,000
Philippines	19,900,000
Singapore	21,600,000
Thailand	12,600,000
Vietnam	1,100,000
Asian Development Bank	130,000,000
TOTAL	859,200,000

The Board of Directors is comprised of 8 Contributor-appointed members, including the Chief Executive Officer. Each of the People's Republic of China and Japan are entitled to nominate two Directors. The Republic of Korea is entitled to nominate one Director. One nomination each is entitled for the Asian Development Bank, and the ASEAN countries representing Brunei Darussalam, Cambodia, Indonesia, Lao People's Democratic Republic, Malaysia, Republic of the Union of Myanmar, Philippines, Singapore, Thailand and Viet Nam.

The Board of Director is accountable and reports to the Contributors on the operations and performance of management and of CGIF. At a minimum, the Board of Directors meets on a quarterly basis.

Board of Directors	Members Represented
Mr. Yuchuan FENG (Chairman)	PR China
Ms. Hongxia LI	PR China
Mr. Kenichi ASO	Japan
Mr. Mitsutoshi KAJIKAWA	Japan
Ms. Jessica Ja Young GU	Korea
Mdm. Azah Hanim AHMAD	ASEAN - Brunei Darussalam, Cambodia, Indonesia, Lao People's Democratic Republic, Malaysia, Republic of the Union of Myanmar, Philippines, Singapore, Thailand and Viet Nam
Mr. Stefan HRUSCHKA	Asian Development Bank
Mr. Kiyoshi NISHIMURA	Credit Guarantee and Investment Facility

The executive decision-making powers of CGIF, and the day-to-day management of CGIF, are mandated and vested to the Chief Executive Officer (CEO). The CEO is recommended by the Board of Directors and approved by the Meeting of Contributors. He is the legal representative of CGIF. The CEO heads the management team currently comprising the Chief Risk Officer, Vice President Operations, Chief Finance Officer, General Counsel and Board Secretary, Corporate Planner and Head of BPPMS, and Internal Auditor.

KIYOSHI NISHIMURA Chief Executive Officer	AARNE DIMANLIG Chief Risk Officer
BOO HOCK KHOO Vice President Operations	GENE SOON PARK General Counsel and Board Secretary
HOU HOCK LIM Corporate Planner and Head of Budget, Planning, Personnel and Management Systems	JACKIE JEONG-AE BANG Internal Auditor
DONG WOO RHEE Chief Financial Officer

OUR BUSINESS

CGIF's bond guarantee operation is aimed at supporting ASEAN+3 companies access the Region's bond markets to achieve the following benefits:

expand and diversify their sources of debt capital
raise funds in matching currencies and tenors
transcend country sovereign ceilings for cross-border transactions
gain familiarity in new bond markets

The guarantees issued by CGIF are irrevocable and unconditional commitments to pay bondholders upon non-payment by the issuers throughout the tenor of the bonds. This commitment is backed by CGIF's equity capital which has been fully paid-in by all of its contributors. CGIF's general bond guarantee structure is illustrated here.

CGIF's guarantees are available to corporations that meet the following eligibility criteria:

The corporate entity and its principal shareholders are from an ASEAN+3 country
The corporate entity must be of an acceptable credit profile based on CGIF's internal credit assessment
The corporate entity's project or business (for general funding purposes) satisfies CGIF's environmental and social safeguards standards
The corporate entity's business is not on the following list of prohibited activities

Please click the link to download the List of Prohibited Activities: List of Prohibited Activities. In addition, bond issuances that can be considered for CGIF guarantees are limited to the following parameters:

Up to USD140 million equivalent for a single issuance
Bond tenor of up to 10 years
For foreign currency denominated issuance, the currency of issuance should be adequately hedged with the corporate entity's export receipts, inward foreign currency remittances, or via financial hedge arrangements

Eligible corporations based on the eligibility criteria are encouraged to submit base level information for a preliminary assessment either directly or via the respective bond arrangers. The information requirements for this preliminary assessment are summarized in the Preliminary Information Pack (PIP) form below. Preliminary Information Pack for General Corporates Preliminary Information Pack for Project Finance The completed PIP form can be emailed to CGIF's operations team at guarantee_enquiries@cgif-abmi.org with the contact details of the submitting party. Additional clarification or information may be required as part of the initial clearance process.

INVESTORS

CGIF's strong claims paying ability has been recognized by international and domestic credit rating agencies.

Credit Rating Agency	Scale	Rating	Outlook	Date Issued
Standard & Poor's	Global (Long Term & Short Term)	AA / A-1+	Stable	22 June 2018
RAM Ratings	Global / ASEAN / National	gAAA / seaAAA / AAA	Stable	16 January 2019
MARC	National	AAA	Stable	14 January 2019
TRIS Ratings	National	AAA	Stable	10 October 2018
Fitch Ratings Indonesia	National	AAA	Stable	15 November 2018

View Previous Ratings

For the complete Guarantee Portfolio table click here

Country borders or names do not necessarily reflect the CGIF's official position. This map is for illustrative purposes only and does not imply the expression of any opinion on the part of CGIF, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries.

	Country of Origin (Issuer)
	HONGKONG, CHINA
	INDONESIA
	LAO PDR
	PHILIPPINES
	SINGAPORE
	THAILAND
	VIETNAM

Please click the links below to download CGIF's Financial Statements:

Please click the link below to download CGIF's Progress Reports:

CGIF guarantees REE Corporation’s inaugural VND2.318 trillion fixed rate bonds, arranged by Standard Chartered Vietnam 29 January 2019
CGIF supports Myanmar’s Yoma Strategic to issue landmark Thai Baht bonds 25 January 2019
CGIF revised Environmental and Social Safeguards 27 December 2018
CGIF co-guarantees Boonthavorn Ceramic 2000 Co. Ltd.'s debut in the Thai bond market with Kasikornbank 19 December 2018
CGIF successfully supported Siamgas and Petrochemicals Public Company Limited to issue its second CGIF-guaranteed THB bonds 11 December 2018
CGIF guarantees its first AMBIF bonds issued by AEON Credit Service (Philippines) Inc. (Japanese) 26 November 2018
CGIF guarantees its first AMBIF bonds issued by AEON Credit Service (Philippines) Inc. (English) 19 November 2018
CGIF guarantees Hoan My Medical Corporation’s inaugural VND2.33 trillion dual-tranche fixed rate bonds 08 October 2018
The PAN Group successfully issues its inaugural VND1.135 trillion fixed rate bonds, guaranteed by CGIF and placed through SCB Vietnam 11 September 2018
CGIF raises capital from Cambodia 08 August 2018

View More Press Release

Subscribe to Newsletter

Infrastructure Financing's True North 09 May 2018
AMBIF driving standardization across Asean+3’s local currency bond markets 29 January 2018
CGIF Stakeholders to boost CGIF’s pivotal role in Asean’s local bond markets 01 November 2017
CGIF’s new guarantee for construction risk in SE Asian greenfield projects 11 July 2017
Insurers help to pay for Asia's infrastructure needs (Nikkei Asian Review) 30 March 2017
CGIF Signs its First Reinsurance Treaty with World Leading Reinsurers 06 December 2016
CGIF guarantees its first Malaysian issuer, KNM Group Berhad, in support of renewable energy in Thailand 24 November 2016
Future Road Map 29 December 2014
Danajamin Signs Strategic Collaboration Agreement With Credit Guarantee and Investment Facility 30 September 2014
BCA Finance dan CGIF Sepakati Penerbitan Medium Term Notes (MTN) III 2013 Senilai Rp300 Miliar 02 December 2013

View More News

Subscribe to Newsletter

SAFEGUARDS

Environmental and Social Safeguards Policy

Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank (ADB) was established to promote economic development and resilience of the financial markets in ASEAN+3 countries through a sustained development of deep and liquid local currency and regional bond markets. This Environmental and Social Safeguards Policy (the “Policy”) has been drafted to ensure that CGIF achieves this objective while promoting environmental and social sustainability of the activities financed with the support of CGIF’s guarantees. The objective of the Policy is to comply in all respects with (i) the requirements for Financial Intermediaries² as detailed in Safeguard Requirements 4 of ADB’s Safeguard Policy Statement 2009, as updated (SPS); and (ii) requirements for the protection of the environment and of Indigenous Peoples, and the sustainable management of involuntary resettlement contained within ADB’s Safeguard Requirements 1-3 as applicable, and this Policy shall be understood and applied accordingly. ³
Pursuant to the Policy, CGIF will establish and implement comprehensive internal procedures for reviewing, assessing, monitoring, and implementing transactions supporting corporate financing, to ensure compliance with the Policy (the “Environmental and Social Safeguards Framework” or “the Framework”). The Framework requires environmental and social screening, categorization and due diligence procedures, and monitoring processes throughout the life of a transaction in conformity with the principles and requirements embodied in the Policy. CGIF will work with its prospective guaranteed bond issuers (the “Prospective Issuers”) and its outstanding guaranteed bond issuers (the “Outstanding Issuers”) to ensure and enhance effective management of environmental and social risks by:
1. ensuring that the Policy is complied with for all guarantees issued;
2. guaranteeing bonds for projects only when the projects are required to be designed, constructed, operated, and maintained in a manner consistent with the Policy;
3. guaranteeing corporate bonds only when the Prospective Issuer is required to implement an environmental and social management system consistent with the Policy;
4. requiring environmental and social risk identification and management to be integrated into the Outstanding Issuers’ internal risk analysis;
1. actively encouraging and requiring Prospective Issuers and Outstanding Issuers (together, the “Issuers”) to adhere to the Policy;
2. ensuring appropriate consultation and disclosure, as applicable, with stakeholders for all bond guarantees; and
3. promoting bond issuers that provide environmental and social benefits.
The Policy and its associated Framework apply to all Outstanding Issuers and Prospective Issuers. CGIF will not issue a guarantee unless the Prospective Issuer has agreed to comply with the Policy and the host country’s social and environmental laws and regulations, including international laws adopted/ratified by the host country. In addition, CGIF will not issue a guarantee if the Prospective Issuer’s activities which are to be financed by the bond are included in ADB’s Prohibited Investment Activities List in its most recent version (“PIAL”).

____________________________________________

¹This Policy and the Framework apply to all CGIF bond guarantees for which application is made after 1 January 2019. The revised Environmental and Social Safeguards Policy and Framework was endorsed by CGIF’s Board as advised in CGIF’s CEO announcement dated 30 November 2018 and available at www.cgif-abmi.org. Updates to the Policy and Framework may be required from time to time and will be released on CGIFs website promptly following such updates.

²CGIF was established as a Financial Intermediary of ADB as detailed in the Report and Recommendation of the President dated March 2010 and available at https://www.adb.org/projects/44908-014/main#project-pds.

³This Policy will be updated as appropriate, if SPS is updated or if at any time it becomes apparent, as a result of any omission in the Policy, that the Policy does not meet the stated objective.