Advanced Bank of Asia Limited (ABA Bank), a National Bank of Canada Group member, kicked off a road show on Wednesday to present its corporate bond to potential investors.
According to a company statement, ABA Bank plans to issue the bonds on August 16 and aims to raise 128 billion riel ($31.33 million).
The bonds will have a maturity date of three years and an annual coupon rate from seven to 7.75 per cent.
They will be priced at 100,000 riel per unit and have SBI Royal Securities Plc as the underwriter.
ABA Bank will use the capital received from the issuance to expand its operations to support rural businesses, small and medium, including the Kingdom’s female entrepreneurs.
ABA Bank CEO Askhat Azhikhanov said during the road show that the corporate bond issuance is another milestone for the bank and will contribute to the development of the Cambodia Securities Exchange (CSX), as well as promote the use of the national currency.
“Through this bond, ABA will be able to provide more loans in riel to rural small and medium sized enterprises to support their businesses and operations,” he said.
Unlike a fixed deposit, ABA bonds will offer coupon payments every six months, giving investors the opportunity to resell on the stock market if they want to, said Askhat.
Securities and Exchange Commission of Cambodia director-general Sou Socheat said the arrival of ABA Bank bonds signals progress for the CSX.
“As one [unit] is valued at only 100,000 riel, anyone can buy it,” he said.
Socheat hopes that more companies will list on the CSX by the end of this year.