Credit Guarantee and Investment Facility (CGIF)

Institution type  Multilateral development agency
Ownership  Ten ASEAN Members States together with the People's Republic of China, Japan, Republic of Korea (ASEAN+3) and Asian Development Bank (ADB)
Head office  c/o Asian Development Bank, 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines
Ratings  Standard & Poor's ( Global Ratings : AA / A-1+, ASEAN Rating: axAAA)
RAM Ratings (Global, ASEAN & National Ratings: AAA)
MARC (National Rating: AAA)
TRIS Rating (National Rating: AAA)
Major instruments  Bond guarantee
Contact   http://www.cgif-abmi.org/
E: guarantee_enquiries@cgif-abmi.org 
Tel: +63 2 683 1340
SUMMARY

The Credit Guarantee and Investment Facility (CGIF), established in 2010, promotes financial stability and boosts long-term investments in the region via its mandate to develop local bond markets in the ASEAN+3 region. It offers guarantees on local currency denominated bonds to facilitate companies’ access to local bonds with longer maturities. This reduces their dependency on short-term foreign currency borrowing and addresses currency and maturity mismatch. Increased local currency bond issuance will also promote financial stability in the region and aid the development of ASEAN’s bond markets. CGIF has received capital contributions of $700 million.

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
  • To mobilise capital across the region

 

Instrument name   Bond guarantee
Instrument type  Irrevocable and unconditional bond guarantee
Eligible projects and bond issuers  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 proceeds of corporate entity's bonds will not be used for activities which are on its list of prohibited activities (refer to CGIF’s website)
Eligible beneficiaries Bond holders  Eligible forms of investment Local currency denominated bonds issued by companies in ASEAN+3 countries.
Risk types covered  Non-payment by the issuer
Maximum tenor  Bond tenor of up to 10 years
Maximum amount or cover  Up to a 100% of the issued bond
Up to USD 140 million equivalent for a single issuance
Guarantee fee  No information