MIGA Supports Credit Expansion for Cambodian Women Entrepreneurs
WASHINGTON, May 21, 2025 – The Multilateral Investment Guarantee Agency (MIGA), which houses the World Bank Group Guarantee Platform, issued a guarantee of $300 million to National Bank of Canada (NBC) for its investment in the Advanced Bank Asia Limited (ABA) of Cambodia. The guaranteed assets are protected for a period of up to three years, freeing up capital at the NBC level that will be deployed into their subsidiary in Cambodia to support new domestic lending.
The project builds on MIGA’s previous guarantee of $300 million for up to three years. The current guarantee allows NBC to generate loan capacity of up to $576.9 million, which will be deployed to support loan growth in Cambodia. ABA will channel this financing toward women-owned small and medium enterprises (WSMEs) and retail loans for women.
MIGA’s guarantee will support ABA to expand its WSMEs and women’s retail banking portfolios, increasing women’s access to finance. Of the total financing, $566.9 million will be allocated to WSMEs, and $10 million to retail loans for women. Cambodia’s SME financing gap is estimated at $5.2 billion, or 22% of GDP. The support to retail lending is expected to benefit a significant number of women borrowers.
“MIGA’s guarantee is a key initiative in empowering women entrepreneurs in Cambodia,” said Hiroshi Matano, MIGA Executive Vice President. “By enabling National Bank of Canada to expand its loan capacity, we are directly addressing the financing gap faced by women-owned small and medium enterprises. This project not only supports the growth of WSMEs but also enhances financial inclusion and economic resilience in Cambodia. We aim to contribute to the sustainable development of the country by fostering an environment where women entrepreneurs can thrive and drive economic progress.”
This project aims to enhance stability, financial soundness, and resilience of Cambodia's SME sector, including women-owned SMEs, by demonstrating the viability of lending to this sector traditionally perceived as riskier. Additionally, the project seeks to contribute to broader financial stability by diversifying lending away from real estate and construction, where credit demand has significantly declined, impacting overall credit growth.
“Women-owned small and medium enterprises play a critical role in the Cambodian economy,” said Bill Bonnell, Executive Vice-President, National Bank of Canada. “The MIGA guarantee will help ABA sustain their continued growth in Cambodia. We are happy to have secured this constructive guarantee.”
The project aligns with the World Bank Group Country Partnership Framework FY25-29 for Cambodia. The MIGA guarantee will support the implementation of a Gender Action Plan, enhancing ABA’s knowledge and capacity to effectively serve women’s financing needs and fostering an organizational culture that champions these initiatives.
About National Bank of Canada (NBC)
With CA$484 billion in assets as of January 31, 2025, National Bank of Canada is one of Canada’s six systemically important banks. The Bank has approximately 30,000 employees in knowledge-intensive positions and operates through three business segments in Canada: Personal and Commercial Banking, Wealth Management and Financial Markets. A fourth segment, U.S. Specialty Finance and International, complements the growth of its domestic operations. Its securities are listed on the Toronto Stock Exchange (TSX: NA). Follow the Bank’s activities at nbc.ca or via social media.
About the World Bank Group Guarantee Platform
Initiated in 2024, the World Bank Group Guarantee Platform consolidates guarantee products and experts from across the World Bank Group at MIGA. It provides a simplified and comprehensive menu of guarantee solutions, enabling clients to select the instrument that best suits their needs. The platform streamlines processes, removes redundancies, and provides greater accessibility by de-risking investments in developing countries. Its goal is to boost the World Bank Group’s annual guarantee issuance to $20 billion by 2030.
For more information about the guarantee platform, please visit: https://www.worldbank.org/wbgguarantees
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Contact:
In Washington: Elizabeth Howton, (202) 458-5922 or ehowton@worldbankgroup.org